Shareholders of Al Rajhi Takaful Company, one of the biggest insurers in Saudi Arabia, have approved an increase of the company's capital by 100% to SAR2bn ($533m). The approval was given at an extraordinary general meeting on 21 June.
Disclosing this in a statement lodged with the Saudi Exchange, Al Rajhi Takaful said that that the aim of this step is to support its financial position and enhance its ability to achieve its strategic goals, which will contribute to improving its operational efficiency and increasing its ability to expand and grow in the Saudi insurance market.
The increase will be effected through the issuance of free bonus shares to shareholders, in a step aimed at strengthening its financial structure and supporting its strategic plans within the cooperative insurance sector. The number of shares before the increase is 100,000,000 shares, and after the increase will be 200,000,000 shares.
The bonus issue will be achieved by capitalising SAR1bn from retained earnings.