Taiba gets CMA nod on 92% capital hike via bonus shares

Logo of Taiba Investments Co.

The Capital Market Authority (CMA) approved Taiba Investments Co.’s request to increase capital by 92%, from SAR 2.6 million to SAR 5 million, through a 1-for-1.09 bonus share 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 8.

The CMA said the planned capital hike will be paid by capitalizing SAR 1 billion from the statutory reserve and SAR 1.39 billion from the share premium balance. Consequently, the company's outstanding shares will rise from 260.5 million to 500 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, Taiba’s board of directors, on March 1, recommended a 91.97% capital increase (granting 0.9197 share for each share owned) to SAR 5 billion from SAR 2.6 billion by capitalizing SAR 2.39 billion from the statutory reserve and share premium balance.