CMA approves Tadweeer’s 100% capital hike via bonus shares

Tadweeer plans to increase capital from SAR 116.16 mln to SAR 232.32 mln via a 1:1 bonus issue

The Capital Market Authority (CMA) approved National Environmental Recycling Co. (Tadweeer) application to increase its capital by 100% from SAR 116.16 million to SAR 232.32 million, the market regulator said in a statement today, Oct. 6.

The CMA said the potential capital hike will be carried out via bonus shares. The issuance will be eligible to shareholders registered with the Securities Depository Center Co. (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 planned capital hike will be funded by transferring approximately SAR 67.84 million from the share premium account, around SAR 47.74 million from retained earnings, and SAR 577,850 from the statutory reserve. Accordingly, the number of shares will rise from 116.16 million to 232.32 million in total.

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

According to Argaam’s data, Tadweeer’s board recommended in August a 100% capital increase via a 1:1 bonus issue

Fractional shares, if any, will be collected into one portfolio for all shareholders, to be sold at market price, with proceeds distributed to eligible shareholders pro rata within no more than 30 days from the date of determining the entitled shares, Tadweeer added.