CMA approves Al Kathiri's 25% capital hike through bonus shares

The Capital Market Authority (CMA) approved Al Kathiri Holding Co.’s request on increasing its capital from SAR 90.42 million to SAR 113.02 million.

The capital increase will be effected through the distribution of one bonus share for every four shares owned by shareholders who are registered at the Security Depository Center (Edaa) as of the closing of the second trading day after the due date, which will be determined later by the company's board, the CMA said in a statement.

The increase will be carried out by transferring SAR 22.6 million from retained earnings to the company's capital, thus increasing the company's outstanding shares from 9.04 million shares to 11.3 million shares, an increase of 2.26 million shares.

The CMA noted that the company's extraordinary general assembly meeting should be held within six months from its approval date, adding that the company is required to satisfy all regulatory requirements and applicable laws.

The company's board of directors recommended, on March 8, 2021, a 25% capital hike to SAR 113.02 million from SAR 90.42 million through the issuance of bonus shares at 25%, Argaam reported.

The capital hike aims to support the financial position of the company and its future expansions.