Sumou gets CMA nod on 33.3% capital hike via bonus issue

Sumou Real Estate Co. headquarters

The Capital Market Authority (CMA) approved the application Sumou Real Estate Co. to increase its capital from SAR 375 million to SAR 500 million via a bonus issue, the market regulator said in a statement today, May 7.

Accordingly, one bonus share will be issued for every three shares held by shareholders registered with the Securities Depository Center (Edaa) by the close of the second trading day after the record date, to be determined later by the company's board.

The capital top-up will be funded by transferring SAR 125 million from retained earnings. Thus, the number of the company's shares will increase by 12.5 million to 50 million.

The CMA added that Sumou's extraordinary general meeting (EGM) should be held within six months from this approval date, provided that the company satisfies all regulatory requirements and requisite procedures.

In March, Sumou's board of directors recommended a 33.3% capital increase from SAR 375 million to SAR 500 million via a bonus share distribution by capitalizing SAR 125 million from the retained earnings.

The capital hike is aimed to support the capital base as well as the future activities, which will help achieve the targeted growth levels over the coming years, according to Argaam's data.