AI Summary
Logo of Al Rashid Industrial Co.
The Capital Market Authority (CMA) greenlit a request by Al Rashid Industrial Co. to increase its capital to SAR 120 million from SAR 80 million, through a 1-for-2 bonus issue.
Subscription eligibility will be limited to shareholders registered with the Security Depository Center (Edaa) as of the closing of the second trading day after the deciding extraordinary general meeting (EGM), the date for which is yet to be set by the company’s board of directors, according to a statement today, April 20.
The CMA said the planned capital hike will be paid by transferring SAR 40 million from the retained earnings account to the company's capital. Consequently, the company's outstanding shares will rise from eight million to 12 million.
The EGM shall be held within six months from this approval date, and the company shall satisfy all regulatory requirements and applicable laws, the statement added.
According to Argaam’s data, Al Rashid’s board recommended, in December 2025, a 50% increase in the company’s capital, from SAR 80 million to SAR 120 million, by granting one bonus share for every two shares held.
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Capital Increase Details |
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Current Capital |
SAR 80 mln |
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Current No. of Shares |
8 mln |
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Increase Percentage |
50% (1:2 bonus issue) |
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Method |
Capitalization of SAR 40 mln from retained earnings |
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New Capital |
SAR 120 mln |
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New No. of Shares |
12 mln |
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Reasons |
Supporting the company’s growth and business expansion and strengthening its financial position |
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Record Date |
Shareholders recorded in the company’s register with the Securities Depository Center (Edaa) by the close of the second trading day after the general assembly, and who held shares at the end of trading on the assembly date. |
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