Dhofar Insurance Co. (S.A.O.G) called for a Dec. 10 extraordinary general meeting to approve the company's capital restructuring.
The capital restructuring would cut the company's issued and paid-up share capital to 10 million Omani rials from 20 million rials to eliminate its accumulated losses. The restructuring will also take away approximately 6.62 million rials and 50,000 rials from its legal and special reserves, respectively.
The Omani insurer is also considering increasing its authorized share capital to 30 million rials from 20 million rials.
The general meeting will also greenlight Dhofar Insurance's rights issue proposal for 5 million mandatory convertible bonds with a nominal value and issue price of 1 rial per note and another rights issue for 20 million ordinary shares with a nominal value and issue price of 100 baizas per share, to be launched after the capital restructuring.
The firm will then further reduce its issued and paid-up share capital by 2 million rials after the share rights issue is completed and approved by relevant regulatory authorities.
As of Nov. 21, US$1 was equivalent to 0.38 Omani rials.