Arabian Shield plans capital hike

Arabian Shield Cooperative Insurance Co.'s board recommended a 33.33% capital increase to 400 million Saudi Arabian riyals from 300 million riyals through the issuance of bonus shares to enhance the solvency of its capital.

In a notice to the Saudi Stock Exchange, the company said the capital increase will occur through the capitalization of 80 million riyals from retained earnings and 20 million riyals from statutory reserves.

It will be done through the issuance of 1 bonus share for every 3 shares, increasing the number of shares to 40,000,000 from 30,000,000.

The move remains subject to approval from the extraordinary general assembly meeting and authorities.

As of Jan. 12, US$1 was equivalent to 3.75 Saudi Arabian riyals.