Riyadh — Mubasher: Allied Cooperative Insurance Group (ACIG) has invited its shareholders to an extraordinary general meeting (EGM) scheduled for 25 November, to vote on a board recommendation to increase the company's capital.
The proposal entails raising the capital from SAR 291 million to SAR 300 million, representing an increase of approximately 3.09%.
The capital hike will be executed by issuing 900,000 new ordinary shares at an offer price of SAR 10 per share.
These shares will be fully subscribed to by Dayar Al Arabiya Investment Company, which will hold a 3% stake in the company following the transaction.
Consequently, the ownership of existing shareholders will decrease from 100% to 97%.
The company stated that the primary objective of the increase is to comply with the minimum paid-up capital requirement of SAR 300 million for insurance companies.
Of the SAR 9 million in total proceeds, SAR 1.35 million is allocated to increase the statutory deposit to SAR 45 million, while SAR 7.65 million will be placed in a short-term deposit.
The EGM requires a 50% quorum for the first meeting and 25% for a second meeting held one hour later.
