Budget Saudi gets nod for capital hike through bonus shares

Saudi Arabia’s market regulator, the Capital Market Authority (CMA), approved a request by United International Transportation Company Ltd. (Budget Saudi) to raise its capital by 16.66 percent to SAR 711.667 million from SAR 610 million.

The company will issue one bonus share for every six existing shares owned by registered shareholders, the CMA said in a statement on Wednesday.

The capital increase will be financed by transferring a total of SAR 101.667 million from retained earnings. Accordingly, the number of outstanding shares will be increased to 71.17 million from 61 million.

Only shareholders registered by the date of the extraordinary general assembly meeting will be eligible. The meeting date will be fixed later, but must be held within the next six months, according to market rules.

The CMA’s approval is subject to the company’s fulfillment of all regulatory requirements.