CMA approves Paper Home capital hike to SAR 20M via bonus issue

Logo of Paper Home Co.

The Capital Market Authority (CMA) approved Paper Home Co.'s request for a capital increase through a one-for-three bonus issue, the company said today, Sept. 12, in a statement to Tadawul.

The capital top-up will be paid by transferring an amount of SAR 5 million from the retained earnings account to the company's capital, the statement added.

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Consequently, the company's outstanding shares will increase by 500,000 shares from 1.5 million to two million shares.

Subscription eligibility will be limited to shareholders registered with the Security Depository Center (Edaa) as of the closing of the second trading day after the due date, which will be determined later by the company's board.

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

Paper Home Co.’s board of directors recommended in July a 33% capital hike through a one-for-three bonus share distribution by capitalizing SAR 5 million from retained earnings, according to Argaam's data.