Riyadh – Mubasher: The board members of Al Rajhi Company for Cooperative Insurance (Al Rajhi Takaful) proposed a capital hike by 150% through the granting of 1.50 shares for each owned share, which is still subject to the approvals of official authorities and the extraordinary general meeting (EGM).
During its meeting on 11 May, the board recommended to increase the capital to SAR 1 billion which will be distributed over 100 million shares, instead of the current SAR 400 million and 40 million shares.
The company aims to capitalise SAR 600 million from the retained earnings account to carry out the capital hike transaction, according to a bourse filing.
Al Rajhi Takaful noted that the objective of raising its capital is to support the capital base which contributes to the company's strategic expansion plans. This step will guarantee that the firm continues to provide insurance solutions to its clients, including individuals, corporates, and SMEs.
It is worth noting that in 2022, the listed firm achieved net profit before Zakat worth SAR 99.86 million, which was 13.45% lower than SAR 115.38 million in 2021.
The earnings per share went down to SAR 2.24 in 2022 from SAR 2.46 in 2021.
Earlier in 2023, the company announced that Mahmoud Salem Dahduli, who served as the CEO back then, resigned from his position due to personal reasons.
