The board of directors of Allied Cooperative Insurance Group (ACIG) has recommended an increase to the company's capital through a share offering with the suspension of rights issue shares.
ACIG said in a statement on the Saudi Exchange (Tadawul) on 27 July, that the announcement followed the Insurance Authority’s letter dated 15 July 2025, which stipulates that a corrective plan must be submitted by the company to comply with the minimum paid-up capital within 10 working days from the date of the letter.
The statement says that the total amount to be raised through the capital increase is SAR9m ($2.4m), stating that the reason for the increase is to adhere to the minimum paid-up capital of SAR300m for insurance companies.
ACIG says that the offering is limited to investors categorised as “qualified and institutional customers”.
An extraordinary general meeting will be held to vote on the capital increase proposal.
As of 31 December 2024, ACIG’s share capital stood at SAR291m. Accumulated losses reached SAR92.4m, representing 31.75% of the share capital.
ACIG announced on Tadawul on 19 October 2023 the board’s recommendation to increase the share capital by SAR209m by offering right issue shares to existing shareholders. The company had obtained the approval from the Insurance Authority for the capital increase on 07 January 2024. On 30 January 2025, the company received approval from the Insurance Authority to issue right shares, valid for six months. However, shareholders at an extraordinary general meeting in June 2025 rejected the rights issue.