CMA approves AOL 9% capital hike via 1-for-6 bonus issue

Logo of Academy of Learning Co. (AOL)

The Capital Market Authority (CMA) approved Academy of Learning Co.’s (AOL) application to raise its capital from SAR 135 million to SAR 157.5 million, the market regulator said in a statement.

The CMA said the planned capital hike will be carried out via a 1-for-6 bonus share distribution.

Eligibility for the bonus issue will be to shareholders registered with the Securities Depository Center (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 capital increase will be funded by transferring SAR 22.5 million from retained earnings. Accordingly, the number of shares will rise from 135 million to 157.5 million, an increase of 22.5 million shares.

The CMA added that the company’s extraordinary general assembly (EGM) should be held within six months of the approval date, provided all regulatory requirements and applicable laws are satisfied.

Learning Academy’s board recommended last September increasing capital from SAR 135 million to SAR 157.5 million through a 1-for-6 bonus share distribution, according to Argaam’s data.