CMA nods to Nofoth 50% capital hike via bonus issue

Logo of Nofoth Food Products Co.

The Capital Market Authority (CMA) approved the application submitted by Nofoth Food Products Co. to raise its capital to SAR 48 million from SAR 24 million via a one-for-one bonus share distribution, according to a statement today,Oct. 12.

Eligibility for the bonus 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 raise will be financed by transferring SAR 24 million from retained earnings. Consequently, the number of the company's shares will double to 48 million.

The extraordinary general assembly shall be held within six months from this approval date and the company will satisfy all regulatory requirements and applicable laws, the market regulator stated.