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Logo of Al Mawarid Manpower Co.
The Capital Market Authority (CMA) approved Al Mawarid Manpower Co.’s application to raise its capital from SAR 150 million to SAR 200 million, the market regulator said in a statement.
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 for 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 capital increase will be funded by transferring nearly SAR 50 million from retained earnings. Accordingly, the number of shares will rise from 15 million to 20 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.
Al Mawarid’s board recommended last November increasing capital by 33.33%, according to Argaam’s data.
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Capital Increase Details |
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Current Capital |
SAR 150 mln |
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No. of Shares |
15 mln |
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Percentage of Increase |
33.33% (one bonus share for each 3 shares held) |
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Method |
Capitalization of SAR 50 mln from retained earnings |
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New Capital |
SAR 200 mln |
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No. of Shares |
20 mln |
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Reasons |
To support the company’s growth and strengthen its financial position. |
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Record Date |
Shareholders registered with the Securities Depository Center (Edaa) at the end of the second trading day following the EGM. |
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