Makkah Construction board proposes capital hike via statutory reserve

Logo of Makkah Construction and Development Co.

Makkah Construction Co.’s board of directors amended today, Dec. 2 its recommendation for increasing capital through bonus shares, to be funded from statutory reserve instead of retained earnings.

The board also recommended transferring the remaining statutory reserve balance, amounting to SAR 484.44 million to retained earnings, according to a statement to Tadawul.

The recommendation is conditional upon obtaining the approval of competent authorities and the extraordinary general assembly.

The increase value remains the same, at SAR 351.84 million, or 21.53%, through granting 0.21347265293 share for every one share owned, the company added.

According to data available to Argaam, the real estate developer's board recommended, on Oct. 31, increasing capital by 21.35% through a bonus share distribution. The board proposed capitalizing SAR 351.8 million from retained earnings through granting one bonus share for every 4.684 shares held.