Munawla secures CMA nod on 50% capital hike via bonus issue

Loo of Munawla Cargo Co.

The Capital Market Authority (CMA) approved Munawla Cargo Co.’s request to raise its capital by 50%, from SAR 20 million to SAR 30 million.

In a statement, the market regulator stated that the increase will be through the issuance of 1:2 bonus shares. The new shares will be eligible to shareholders registered with the Securities Depository Center Co. (Edaa) by the end of the second trading day following the record date, which will be determined later by the company's board of directors.

The planned capital hike will be funded by capitalizing SAR 10 million from the company’s retained earnings account. Consequently, the number of the company's shares will rise from two million to three million.

An extraordinary general meeting (EGM) shall be held within six months of the date of approval, and the company shall satisfy all regulatory requirements and applicable laws.

According to Argaam data, Munawla’s board of directors recommended, in September, a capital increase through one-for-two bonus shares, to be financed by capitalizing SAR 10 million from the retained earnings balance.

Fractional shares, if any, will be collected in a single portfolio to be sold at market price. The proceeds will then be distributed among eligible shareholders pro rata within 30 days maximum from the date of determining each shareholder’s eligible shares.