Al-Jouf Mineral Water gets CMA nod on 50% capital hike to SAR 46.88 million through bonus issue

Logo of Al-Jouf Mineral Water Bottling Co.

The Capital Market Authority (CMA) gave the green light for Al-Jouf Mineral Water Bottling Co.’s request to increase its capital by 50% through a one-for-two bonus share distribution.

The company's capital will rise from SAR 31.25 million to SAR 46.88 million.

The bonus issue shares will be to shareholders of record in the issuer’s register with the Securities Depository Center Co. (Edaa) by the close of the second trading day following the record date that will be determined later by the board of directors.

CMA noted that the increase will be paid by transferring SAR 15.63 million from retained earnings account to the company's capital. Thus, the number of outstanding shares will grow by 1.56 million from 3.13 million to 4.69 million.

The regulator also stated that the company's extraordinary general meeting (EGM) will be held within six months from the approval date so as to satisfy all regulatory requirements and applicable laws.

Last June, Al-Jouf Mineral Water’s board recommended raising the capital by 50% to SAR 46.88 million through a one-for-two bonus share distribution, according to Argaam’s data.