Zahrat Al Waha gets CMA nod on 50% capital hike via bonus shares

Logo of Zahrat Al Waha for Trading Co. 

Saudi Arabia’s Capital Market Authority (CMA) approved Zahrat Al Waha for Trading Co.’s request to increase capital from SAR 150 million to SAR 225 million through the issue of one bonus share for every two shares held, the authority said in a statement.

Eligibility will be to shareholders registered with the Securities Depository Center (Edaa) as of the closing of the second trading day after the record date, which will be determined later by the company’s board.

The capital hike will be financed by transferring SAR 75 million from the retained earnings account, the statement added.

Accordingly, the company’s shares will be increased from 15 million to 22.5 million shares.

The EGM shall be held within six months from this approval date and the company shall satisfy all regulatory requirements and applicable laws, the authority said.

The company’s board of directors recommended, in November 2021, a 50% capital hike to SAR 225 million from SAR 150 million, through 1-for-2 bonus share distribution, to enhance the company's financial solvency and strengthen its capital to match the size of its business and its future aspirations, according to data compiled by Argaam.