The Saudi Arabian Monetary Authority approved the recommendation of Buruj Cooperative Insurance Co.'s board to raise the company's capital through bonus shares, Mubasher Info reported, citing the company.
Under the recommendation, the capital would climb 20% to 300 million Saudi Arabian riyals from 250 million riyals. The number of shares would also go up to 30 million from 25 million.
One new share will be granted for each five shares. Shareholders who own shares at the close of trading on the day of the extraordinary general assembly meeting on June 4 and those who are registered in the company shareholder register in the second day following the meeting are eligible for the bonus shares.
Fraction shares will be grouped in one portfolio for all shareholders and sold at market price. Proceeds will then be distributed to eligible shareholders based on his or her shares.
The increase will funded by transferring 50 million riyals from retained earnings. It is aimed to strengthen the company's financial and capital position, which may benefit in increasing growth rates and expansion in the future, the publication said.
Buruj Cooperative Insurance said it will be completing the remaining necessary procedures and approvals, including from shareholders in the extraordinary general assembly meeting, Mubasher Info reported.
As of June 5, US$1 was equivalent to 3.75 Saudi Arabian riyals.
