CMA approves WSM’s planned capital hike via bonus shares

Logo of WSM for Information Technology Co.

The Capital Market Authority (CMA) approved WSM for Information Technology Co.’s application to raise its capital from SAR 21.45 million to SAR 28.60 million.

In a statement today, Nov. 18, the CMA said the planned capital hike will be carried out via a 1-for-3 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 potential capital increase will be funded by transferring SAR 7.15 million from retained earnings. Accordingly, the number of shares will rise from 2.15 million to 2.86 million.

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

Last October, WSM’s board recommended increasing capital by 33.33% from SAR 21.45 million to SAR 28.60 million, through a bonus issue, according to Argaam’s data.