Background

The Saudi Capital Market Authority has announced that it has approved the request of Al Rajhi Cooperative Insurance Company (Takaful Al Rajhi) to increase its capital from 400 million riyals to 1 billion riyals by granting 1.5 free shares for each existing share held. Shareholders registered in the register of the issuer’s shareholders in the Depository Center.

Effectivity Date

Saudi Tadavul confirmed in a statement today, Tuesday, that the decision will come into effect at the end of the second trading day following the due date, to be determined by the company’s board of directors at a later date.

Cost Payment and Share Increase

He indicated that the payment for the cost of the capital increase will be made by transferring the amount of 600 million rials from the “retained earnings” item, which will increase the number of shares from 40 million to 100 million shares, an increase from 60 million shares.

Approval Condition and Compliance

The authority confirmed that the condition of approval requires that the date of the company’s extraordinary general meeting does not exceed six months from the date of this approval, and that the company complies with the relevant legal procedures and requirements.

Previous Recommendation

On May 11, 2023, the company’s board of directors recommended an extraordinary general meeting to increase the capital of the company by 150% by granting shares to shareholders, by capitalizing 600 million SAR from retained earnings and granting 1.5 shares per share owned by the shareholder at maturity.