CMA greenlights Arabian Shield’s capital raise to merge with Alinma Tokio Marine

CMA greenlights Arabian Shield’s capital raise to merge with Alinma Tokio Marine

Riyadh – Mubasher: The Capital Market Authority (CMA) approved the request of Arabian Shield Cooperative Insurance Company to increase its capital to SAR 798.15 million from SAR 638.52 million.

The firm will issue 15.96 million ordinary shares to merge with AlinmaTokio Marine Company and transfer the latter’s assets into its insurance portfolio through a securities exchange offer.

Meanwhile, the capital hike shareholder circular will be published within sufficient time before the extraordinary general meeting (EGM), according to a bourse filing.

In the first half (H1) of 2023, Arabian Shield swung to net profits before Zakat worth SAR 36.64 million, compared to net losses valued at SAR 3.22 million a year earlier.

As of 31 March 2023, Alinma Tokio Marine registered accumulated losses amounting to SAR 81.33 million, which represented 27.11% of the SAR 300 million capital.