CMA nods to Maharah’s capital hike via bonus issue

Logo of Maharah Human Resources Co. (Maharah)

The Capital Market Authority (CMA) approved Maharah Human Resources Co.’s request to increase its capital from SAR 475 million to SAR 600 million.

In a statement, the authority said the increase will be carried out through the issuance of five bonus share for every 19 shares held.

Eligible shareholders are those registered with the Security Depository Center (Edaa) by the end of the second trading day after the record date that will be determined later.

The capital increase will be financed by transferring SAR 103.06 million from statutory reserve and SAR 21.9 million from the retained earnings balance, which will increase the number of shares from 475 million to 600 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, said the regulator.

According to Argaam’s data, Mahara’s board recommended a 26.32% capital hike via a bonus share distribution at 0.26-for-1, by capitalizing the entire statutory reserve of SAR 103.06 million and by drawing SAR 21.94 million from retained earnings.