The Capital Market Authority Approves Salama Cooperative Insurance Company Request to Increase its Capital by way of Rights Issue.
Tuesday, April 28, 2015 at 12:00 AM
2015-04-28 (1436/07/09) 09:01:37
Salama Cooperative Insurance Company ("Salama") submitted a request to the CMA to approve its capital increase by way of rights issue valued at SAR 150,000,000. The capital increase will be approved in the Company's extraordinary general assembly meeting, which will be determined by the Company’s board of directors at a later date and should be held within six months from the approval date. After reviewing the Company’s application in light of the governing regulatory requirements, and the quantitative and qualitative criteria applicable to all companies requesting a capital increase, the CMA's Board of Commissioners has issued its resolution approving Salama Cooperative Insurance Company’s capital increase request, which is to be conducted in accordance with the tradable rights framework. The rights issue prospectus will be posted and made available to the public at a later time.
An investment decision based on company’s board recommendation to increase its capital or the CMA’s approval without carefully reading the rights issue prospectus or fully reviewing its content may involve high risk. Therefore, investors should carefully read the prospectus, which includes detailed information on the company, the offering and risk factors. Thus, providing investors the ability to evaluate the viability of investing in the offering, taking into consideration the associated risks. If the prospectus proves difficult to understand, it is recommended to consult with an authorized financial advisor prior to any investment decision.
The CMA’s Board approval of the offer should never be considered as a recommendation to invest in the company. The Board's approval of the offer merely means that the legal requirements as per the Capital Market Law and its Implementing Regulations have been met.