Almuneef gets CMA nod on 50% capital hike through bonus issue

Logo of Almuneef Co. for Trade, Industry, Agriculture and Contracting

The Capital Market Authority (CMA) granted Almuneef Co. for Trade, Industry, Agriculture and Contracting the approval to increase its capital from SAR 38 million to SAR 57 million.

In a statement today, May 19, the authority said the proposed move will be carried out through the issuance of one bonus share for every two held.

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

The planned capital hike will be financed by transferring SAR 19 million from the retained earnings account, which will increase the number of shares from 38 million at present to 57 million.

The company’s deciding extraordinary general meeting (EGM) shall be held within six months from this approval date, provided satisfying all regulatory requirements and applicable laws, the CMA noted.

According to Argaam’s data, Almuneef’s board of directors recommended, in April, a 50% capital increase, through a 1-for-2 bonus issue.