CMA approves Obeikan Glass bonus shares to hike capital to SAR 320 mln

Obeikan Glass manufacturing facility

The Capital Market Authority (CMA) approved an application from Obeikan Glass Co. to increase its capital from SAR 240 million to SAR 320 million, the market regulator said in a statement.

The capital will be raised through the issuance of one bonus share for every three shares held by shareholders registered in the Securities Depository Center (Edaa) by the close of the second trading day after the record date, to be determined later by the glass producer’s board.

The increase will be financed by transferring SAR 80 million from Obeikan Glass’s retained earnings. Accordingly, the total number of shares will increase from 24 million to 32 million.

In January, Obeikan Glass board recommended a 33.3% capital increase to SAR 320 million, through a one-for-three bonus share distribution, Argaam earlier reported.