Saudi Arabia: Al Rajhi increases its paid-up capital by 1.5 times
Source: Middle East Insurance Review | Jan 2024
Shareholders of Al Rajhi Company for Cooperative Insurance (Al Rajhi Takaful) have agreed to increase the operator’s capital by 150% to SAR1bn ($266.6m) from SAR400m. Al Rajhi is among the top five largest insurance providers in Saudi Arabia in terms of premium income.
In a statement lodged with Tadawul, Al Rajhi Takaful said that the increase will be effected by capitalising SAR600m from retained earnings. In this exercise, the company will grant 1.50 shares for each share, according to the statement.
The objective of increasing the share capital is to enhance the company’s funding to achieve strong growth rates in the next several years. Following the increase, the operator’s capital comprises 100m shares instead of 40m shares.
In May 2023, the board of directors of the insurer proposed the capital increase. The total retained earnings in 2022 stood at SAR667.2m, according to the company’s financial statements for 2022.