CMA approves Nofoth's 100% capital hike to SAR 96M

Logo of Nofoth Food Products Co.

The Capital Market Authority (CMA) approved Nofoth Food Products Co.'s application to increase its capital from SAR 48 million to SAR 96 million, the market regulator said in a statement today, April 15.

The capital hike will be carried out through the issuance of one bonus share for every share held by shareholders registered with the Securities Depository Center (Edaa) by the close of the second trading day after the record date, which will be determined later by Nofoth's board.

For more news on listed companies

The move will be funded by transferring SAR 48 million from retained earnings to the company's capital, according to the CMA.

As a result, the number of shares will increase from 48 million to 96 million, reflecting an addition of 48 million shares.

The market regulator stated that the company's extraordinary general meeting (EGM) should be held within six months of this approval date, provided that the company satisfies all regulatory requirements and applicable laws.

Last March, Nofoth’s board recommended a 100% capital increase by distributing one bonus share for every share held, according to Argaam data.

The move aims to boost the company’s financial strength, support expansion plans, and enhance shareholder returns by growing operations and seizing opportunities in the food sector.

Nofoth’s board also approved the company’s transition from the Nomu-Parallel Market to the Main Market (TASI) in January.