Saudi Indian Company for Cooperative Insurance (Wafa Insurance) announced today its plans to increase its capital via an offering of right issues for an estimated amount of 300 million riyals ($80 million).

The proceeds from the capital increase will be used to enhance solvency margin of the company which has been saddled with losses.

In a bourse filing to the Saudi Stock Exchange (Tadawul), the firm said its board has recommended the capital increase.

“Reasons for the increase [is] to enhance solvency margin and support [the] company to return back to practice its insurance operations,” the firm said in a bourse filing to the Saudi Stock Exchange (Tadawul).

In a filing last October, it was highlighted that the firm’s accumulated losses as of September 2019 amounted to a little over 207 million riyals, representing 207 percent of the company’s share capital.

(Writing by Cleofe Maceda; editing by Seban Scaria)

Cleofe.maceda@refinitiv.com

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