Theeb gets CMA nod on 53.4% capital hike via bonus issue

Theeb says the potential capital top-up will be carried out via a 1:2 bonus share distribution 

The Capital Market Authority (CMA) approved Theeb Rent a Car Co.'s application to increase its capital by 53.4% from SAR 430 million to SAR 659.7 million, the market regulator said in a statement today, Oct. 22.

The CMA said the potential capital hike will be carried out via a 1:2 bonus share distribution.

Eligibility to the bonus issue will be 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 top-up will be funded by transferring SAR 161.73 million from retained earnings and SAR 67.98 million from statutory reserve. Thus, the number of the company's shares will increase from 43 million to 65.97 million.

The CMA added that the company's deciding extraordinary general meeting (EGM) should be held within six months from this approval, provided satisfying all regulatory requirements and applicable laws.

According to Argaam data, Theeb’s board approved in August a 53.4% capital increase to SAR 659.72 million from SAR 430 million at present, by distributing bonus shares.