ACIG board scraps stock split plan

Logo of Allied Cooperative Insurance Group (ACIG)

Allied Cooperative Insurance Group’s (ACIG) board of directors cancelled today, Dec. 6, its previous decision to reduce the stock's par value from SAR 10 to SAR 0.1 and maintain the same number of shares, amounting to 29.1 million, according to a statement to Tadawul.

This came due to the infeasibility of the stock split after the board of directors’ recommendation to increase capital to SAR 500 million, the statement added.

On May 18, the company's board of directors recommended splitting the stock's par value from SAR 10 to SAR 0.1 while keeping capital unchanged before recommending in October a capital increase by issuing rights shares worth SAR 209 million, according to Argaam's data.