Riyadh – Mubasher: The Capital Market Authority (CMA) has approved a request from The Company for Cooperative Insurance (Tawuniya) to increase its share capital by 50% through the issuance of bonus shares, according to an official statement.
This decision will raise the company’s capital from SAR 1.50 billion to SAR 2.25 billion.
This increase through the capitalizing SAR 750 million from its retained earnings will be achieved by issuing one bonus share for every two existing shares held by the company’s shareholders.
The issuance of these bonus shares will result in a substantial expansion of the company’s outstanding share count. Specifically, the number of shares will rise from 150 million to 225 million shares, representing an addition of 75 million shares to the market.
This internal accounting transfer effectively converts accumulated profits into permanent share capital, strengthening the company’s financial position on the Saudi Exchange (Tadawul).
Eligibility for the bonus shares is strictly defined by the regulatory framework. The shares will be granted to shareholders who are registered in the company’s registry at the Security Depository Center (Edaa) as of the closing of the second trading day following the due date.
While the specific due date has not yet been finalized, the CMA noted that it will be determined by the company’s Board of Directors at a future time.
Following the CMA’s approval, the company must now proceed with the necessary corporate governance steps to finalize the capital hike. This includes the convening of an Extraordinary General Assembly (EGM) to obtain shareholder approval for the capital increase and the subsequent amendments to the company’s bylaws.
According to the CMA’s directive, the EGM must be held within six months of the approval date. Furthermore, the company is required to satisfy all remaining regulatory requirements and adhere to all applicable laws throughout the implementation process.
