Walaa Insurance plans to increase the capital by 755 million riyals

The board of directors of Walaa Cooperative Insurance Company recommended a capital increase through a rights issue offering.

According to Arabiya Net, the company said in a statement that the total amount sought is 755 million riyals.

and added that the reasons for the increase are to support the expansion of the company's activity and enhance the solvency margin.

and clarified that the shareholders who own the shares are eligible on the day of the extraordinary general assembly that decided to increase the capital by offering priority rights shares and whose names appear in the issuer's shareholder register with Depository center at the end of the second trading day following the date of the association.

and the increase is subject to the approval of the Central Bank of Saudi Arabia, the Capital Market Authority and other relevant regulatory bodies, in addition to the approval of the extraordinary general assembly.

Walaa Cooperative Insurance said that it will announce later when a financial advisor is appointed for the offering, as well as when submitting a capital increase request file to the Authority and when there are any future developments in this regard.

It is reported that the company's authorized and paid-up capital after the merger with MetLife AIG Arab, last year, amounted to about 646.4 million riyals, distributed over 64.6 million shares. , With a nominal value of 10 riyals per share. The quarterly profits of Walaa Cooperative Insurance Company increased by 218%, in the third quarter of 2020, to 25.2 million riyals, compared to 7.9 million riyals, in the corresponding period last year.

During the first nine months of 2020, Walaa Insurance's profits grew by 360%, to 42.8 million riyals, compared to 9.2 million riyals, in the corresponding period of last year.