Retal gets CMA nod on capital hike through 25% bonus issue

Logo of Retal Urban Development Co. 

The Capital Market Authority (CMA) approved an application from Retal Urban Development Co. to increase its capital from SAR 400 million to SAR 500 million, the market regulator said in a statement. The capital will be raised through the issuance of one bonus share for every four shares held by shareholders registered in the Securities Depository Center (Edaa) by the close of the second trading day after the record date, to be determined later.

CMA added that such increase will be paid by transferring an amount of SAR 100 million from retained earnings account to the company's capital.

The CMA added that the company's extraordinary general assembly meeting (EGM) should be held within six months from this approval date, provided that Retal shall satisfy all regulatory requirements and applicable laws.

The company's board of directors recommended a capital increase from SAR 400 million to SAR 500 million, through 25% bonus share distribution at 1-for-4, Argaam's data showed.