The accumulated losses of the Gulf Union National Cooperative Insurance Company decreased to 29.63% of the capital, after completing the procedures for increasing the company’s capital from about 229.47 million riyals, to about 458.95 million riyals, an increase of 100% through offering rights shares with a number of about 22.95 million ordinary shares. With a value of about 229.47 million riyals.
According to Arabiya Net, the company’s board of directors had issued a recommendation to increase the company’s capital through a rights issue in order to support the company’s future plans, enhance the margin of solvency and increase investment income, and the approval of the company’s extraordinary general assembly was obtained to increase the company’s capital, which was held on 20 April 2022.
Gulf National Insurance added that the procedures and instructions for companies listed in the market, whose accumulated losses amounted to 20% or more of their capital, will be applied.
She explained that according to the percentage of losses amounting to 29.63% of the company’s capital, this announcement definitively excludes the company from the scope of Article 150 of the Companies Law due to the decrease in losses to less than 50% of the capital.