CMA approves SAIC’s 20% increase capital via bonus shares

Logo of Saudi Advanced Industries Co. (SAIC)

The Capital Market Authority (CMA) approved an application from Saudi Advanced Industries Co. (SAIC) to increase its capital from SAR 500 million to SAR 600 million, the market regulator said in a statement.

The capital will be raised through the issuance of one bonus share for every five shares held by shareholders registered in the Securities Depository Center (Edaa) by the close of the second trading day after the record date, to be determined later by SAIC’s board.

The increase will be paid by transferring SAR 100 billion from the company’s retained earnings. Accordingly, the total number of shares will increase by 10 million to 60 million.

The CMA added that the company's extraordinary general assembly meeting (EGM) should be held within six months from this approval date, provided that SAIC shall satisfy all regulatory requirements and applicable laws.

In May, SAIC’s board recommended raising capital by 20% through distributing one bonus share for every five shares held, Argaam earlier reported.