Riyadh – Mubasher: The shareholders of Chubb Arabia Cooperative Insurance Company have agreed to increase the capital by 50% or SAR 100 million through bonus shares, according to a bourse filing on Thursday.
The new capital will stand at SAR 300 million, compared to SAR 200 million prior to the raise.
Chubb Arabia will grant one bonus share for every two owned shares, capitalising the increase value from retained earnings as on 31 December 2020.
The listed firm aims to endorse its capital base to achieve higher growth rates, expand business, and maintain solvency margin over the coming years through the capital hike.
In a separate disclosure, the Saudi Exchange (Tadawul) announced that the fluctuation limit for Chubb Arabia’s stock will be based on a share price of SAR 36.05.
The outstanding shares will be accordingly cancelled.
Meanwhile, the Securities Depository Center (Edaa) will deposit the bonus shares into the investors’ portfolios on 26 July.
Last April, Chubb Arabia received the Saudi Central Bank’s (SAMA) approval to raise the capital by SAR 100 million.
