CMA nods to Maaden’s 50% capital hike

Logo of Saudi Arabian Mining Co. (Maaden)

The Capital Market Authority (CMA) approved an application from Saudi Arabian Mining Co. (Maaden) to increase its capital from SAR 24.61 billion to SAR 36.92 billion, the market regulator said in a statement today, April 13.

This will be through the issuance of one bonus share for every two shares held by shareholders registered with the Securities Depository Center (Edaa) by the close of the second trading day after the record date, to be determined later by Maaden’s board.

The capital top-up will be funded by transferring SAR 2.5 billion and SAR 9.8 billion from the company’s statutory reserve and retained earnings, respectively.

Accordingly, the total number of shares will increase by 1.23 billion to almost 3.69 billion.

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

In February, Maaden’s board recommended raising capital by 50% through a one-for-two bonus share distribution, aiming to strengthen the company's capital base to enhance future growth plans, Argaam earlier reported.