Munawla gets CMA's nod on capital increase to SAR 20M via bonus issue

Logo of Munawla Cargo Co.

The Capital Market Authority (CMA) approved Munawla Cargo Co.'s request to increase its capital from SAR 10 million to SAR 20 million through issuing one bonus share for every one existing share.

The bonus issue will be for shareholders who are registered with the Securities Depository Center (Edaa) at the close of the second trading day after the record date, which will be determined later by the company's board.

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The capital top-up will be financed by transferring SAR 10 million from the retained earnings account to the company's capital, thus raising the number of outstanding shares from one million to two million in total.

This is provided that the company's extraordinary general meeting (EGM) is convened within six months of this approval date. Munawla should satisfy all regulatory requirements and applicable laws in this regard.

The company's board of directors recommended, on July 17, a 100% capital hike by capitalizing SAR 10 million from retained earnings via a 1-for-1 bonus issue, data available to Argaam showed.