AI Summary
Logo of Mulkia Investment Co.
The Capital Market Authority (CMA) approved Mulkia Investment Co.'s request to increase its capital from SAR 65 million to SAR 78 million through issuing one bonus share for every five existing shares owned, according to a statement.
Subscription eligibility will be to shareholders who are registered with the Securities Depository Center (Edaa) as of the closing of the second trading day after the record date, which will be determined later.
The planned capital hike will be funded by capitalizing SAR 13 million from the company’s retained earnings account.
Consequently, the number of the company's outstanding shares will rise from 6.5 million to 7.8 million.
The company’s extraordinary general meeting (EGM) shall be held within six months from this approval date and the company shall satisfy all regulatory requirements and applicable laws.
According to data available with Argaam, in March, the company’s board of directors recommended a 20% capital increase through a 1-for-5 bonus share issue.
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Capital Increase Details |
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Current Capital |
SAR 65 mln |
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Current Number of Shares |
6.5 mln |
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Nominal Value |
SAR 10 |
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Capital Increase (%) |
20% (One bonus shares for each five existing shares) |
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Method |
Capitalizing SAR 13 mln from retained earnings |
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New Capital |
SAR 78 mln |
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Number of Shares |
7.8 mln |
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Reason |
Enhancing financial solvency in line with its future aspirations, implementing growth plans and maximizing shareholder returns. |
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Eligibility |
Shareholders of record on the EGM date, which will be determined later, and those registered with Edaa by the end of the second trading day after the EGM |
Fractional shares, if any, will be consolidated into a single portfolio for all shareholders and sold at the market price. The resulting amount will then be distributed among eligible shareholders pro rata, within a period not exceeding 30 days.
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