Enaya recommends capital reduction of 32.72% by reducing the par value per share, and then increase via rights issue

Logo of Enaya Saudi Cooperative Insurance Company

The Board of Directors of Enaya Saudi Cooperative Insurance Company recommended to the Extraordinary General Assembly to reduce the company's capital from SAR 230 million to SAR 154.75 million, by 32.72%, to restructure the capital and offset accumulated losses, and subsequently increase the company's capital through a rights issue.

As shown in the following table:

Capital reduction details

Current capital

SAR 230 million

Number of shares

23 million shares

Capital after reduction

SAR 154.75 million

Number of shares after reduction

23 million shares

Reduction ratio

32.716 %

Reason for reduction

Restructuring of the company's capital to offset accumulated losses

Reduction date

End of the second trading day following the meeting of the Extraordinary General Assembly that approved the capital reduction

Reduction method

Capital reduction of SAR 75.25 million by reducing the par value per share from SAR 10 to SAR 6.73

The company clarified in a statement on Tadawul that the capital reduction has no impact on its financial obligations.

The Board of Directors also recommended in the same decision dated July 6, 2026, to the Extraordinary General Assembly, after completing the capital reduction process, to increase the company's capital through a rights issue of SAR 160 million.

As shown in the following table:

Capital increase details

Current capital

SAR 154.75 million

Number of shares

23 million shares

Capital after increase

SAR 314.75 million

Number of shares after increase

46.78 million shares

Increase ratio

103.39 %

Reason for increase

Meeting the minimum capital requirement per the Insurance Authority's requirements

Increase date

Eligibility to subscribe is for shareholders who own shares on the day of the Extraordinary General Assembly that decided the capital increase through a rights issue and whose names appear in the issuer's shareholder register at the Depository Center at the end of the second trading day following the date of the Extraordinary General Assembly.

It stated that the capital reduction and increase process is subject to approval from relevant official authorities and the Extraordinary General Assembly, and the Extraordinary General Assembly's approval of the capital increase through a rights issue is conditional on its approval of the proposed capital reduction.

It added that Al Awal Capital will be appointed as financial advisor for the capital reduction process and as lead manager and underwriter for the proposed capital increase. An announcement will be made upon submitting the capital reduction request file to the Capital Market Authority for approval.

It indicated that it will announce any material developments in this regard in due course in accordance with relevant regulatory requirements.

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