CMA imposes SAR 40,000 fine on Makkah Construction for securities offering violations

Logo of Makkah Construction and Development Co.

The Capital Market Authority (CMA) imposed a fine of SAR 40,000 on Makkah Construction and Development Co., the regulator said in a statement today, March 21.

Makkah Construction was fined due to its violation of the rules on the offering of securities and continuing obligations. It also did not disclose on the Saudi Exchange (Tadawul) website its interim financials for the periods ended May 30 before the deadline on July 25, 2022, but filed them on Aug. 18, 2022, said CMA.

Furthermore, the company violated the general instructions for companies' announcements. It disclosed false information in last year’s July 25 announcement on Tadawul website on its interim financials for the period ended May 30, 2022, saying that net profit after Zakat and tax is SAR 78 million, the total comprehensive income is SAR 351 million, earnings per share is SAR 0.52 and total shareholders’ equity at SAR 4.36 million from SAR 5.11 million in the prior-year period.

The statement of the type of external auditor's report was “unmodified conclusion", which was corrected by the company's announcement published on Tadawul website on Aug. 17, 2022.