CMA OKs Maharah's capital hike to SAR 475 mln via bonus issue

Logo of Maharah Human Resources Co.

The Capital Market Authority (CMA) approved the application received from Maharah Human Resources Co. to increase its capital to SAR 475 million from SAR 375 million via a one-for-five bonus share distribution, according to a statement today, April 27.

Eligibility for the bonus share distribution will be to shareholders registered with the Securities Depository Center Co. (Edaa) as of the close of the second trading day after the record date, which will be determined later by the company's board, the CMA added.

The increase will be financed by transferring SAR 100 million from retained earnings. Consequently, the number of the company's shares will rise from 37.5 million to 47.5 million.

Maharah should convene an extraordinary general meeting (EGM) within six months from this approval date and should satisfy all regulatory requirements and applicable laws, the market regulator stated.

Maharah’s board of directors recommended, during its meeting in March, increasing the company’s capital by 26.7% to SAR 475 million, Argaam’s data showed.