CMA approves eXtra’s capital hike to SAR 600 mln through bonus shares

The Capital Market Authority (CMA) approved a request from United Electronics Co. (eXtra) to raise its capital to SAR 600 million from SAR 500 million through the issue of one bonus share for every five shares held, the market regulator said in a bourse statement.

Shareholders of record at the Security Depository Center (Edaa) as of the closing of the second trading day after the due date, which will be determined later by the company, are eligible for this increase.

The capital increase will be financed by transferring SAR 40 million from the statutory reserve and SAR 60 million from retained earnings.

eXtra’s outstanding shares will be increased from 50 million to 60 million.

The extraordinary general assembly shall be held within six months from the CMA’s approval date, the statement added.

The company’s board of directors recommended raising capital by 20% to SAR 600 million to boost eXtra’s financial position.