Saudi: Salama Cooperative eyes $26.66mln capital raise

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Riyadh – The board members of Salama Cooperative Insurance Company proposed a capital hike to SAR 300 million by offering rights issues valued at SAR 100 million, according to a bourse statement.

The board’s recommendation, which was decided on 18 March, aims to meet the minimum capital according to the requirements of the Insurance Authority.

Meanwhile, the company's capital increase is subject to the approval of the Insurance Authority, the Capital Market Authority (CMA), and the approval of the extraordinary general assembly.

In the January-December 2023 period, the insurance firm turned profitable at SAR 51.30 million, against net losses valued at SAR 38.86 million in 2022.

Earnings per share (EPS) hit SAR 3.25 in 2023, compared to a loss per share of SAR 2.55 a year earlier.

Accumulated losses amounted to SAR 35.72 million as of 31 December 2023, accounting for 17.86% of the capital.