View gets CMA nod on 100% capital hike via bonus issue

Logo of View United Real Estate Development Co.

The Capital Market Authority (CMA) approved View United Real Estate Development Co.'s application to increase its capital by 100% from SAR 33 million to SAR 66 million, the market regulator said in a statement today, Oct. 29.

The CMA said the potential capital hike will be carried out via a 1:1 bonus share distribution.

Eligibility to the bonus issue will be 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 top-up will be funded by transferring SAR 18 million from issue premium and SAR 15 million from retained earnings. Thus, the number of the company's shares will increase from 33 million to 66 million.

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

In April, View’s board recommended increasing capital via a 100% bonus issue (one bonus share for every share held), capitalizing SAR 880,400 from additional paid-in capital, SAR 18 million from the share premium account and SAR 14.1 million from retained earnings, Argaam data showed.

The company’s board of directors amended in September its earlier recommendation regarding a capital increase through a bonus share distribution. The revised recommendation maintains the capital increase ratio at 100% (one bonus share for every share held) but adjusts the capital sources. The revised proposal includes capitalizing SAR 18 million from the share premium account and SAR 15 million from retained earnings.

View amended all affected items in the financial statements for previous periods. As part of this adjustment, an amount of SAR 880,400 was reclassified under retained earnings instead of additional paid-in capital.