DRC gets CMA nod on 75% capital hike through bonus issue

Logo of Digital Research Co. (DRC)

The Capital Market Authority (CMA) granted Digital Research Co. (DRC) the approval to increase its capital from SAR 16.88 million to SAR 29.53 million.

In a statement today, May 11, the authority said the proposed move will be carried out through the issuance of three bonus shares for every four shares held.

Eligible shareholders are those registered with the Security Depository Center (Edaa) by the end of the second trading day after the record date, which will be determined later.

The planned capital hike will be financed by transferring SAR 158,290 from the statutory reserve and SAR 12.5 million from issue premium balance, which will increase the number of shares from 1.69 million at present to 2.95 million.

The company’s deciding extraordinary general meeting (EGM) shall be held within six months from this approval date, provided satisfying all regulatory requirements and applicable laws, said the regulator.

According to Argaam’s data, DRC’s board recommended last April a 75% capital increase, through a 3-for-4 bonus share distribution.