CMA nods to Obeikan Glass capital hike via bonus issue

Obeikan Glass manufacturing facility

The Capital Market Authority (CMA) approved Obeikan Glass Co.'s application to increase capital from SAR 240 million to SAR 320 million through a one-for-three bonus share distribution, according to a statement.

Shareholders registered with Securities Depository Center Co. (Edaa) as of the close of the second trading day after the record date, which will be determined later by the company's board, will be eligible for bonus shares, it added.

The capital top-up will be paid by transferring SAR 80 million from retained earnings to Obeikan Glass capital, thus raising the company's outstanding shares from 24 million to 32 million.

The market regulator also said that the company's extraordinary general assembly shall be held within six months from this approval date, meeting all regulatory requirements and applicable laws.

Obeikan Glass board recommended, on Sept. 11, increasing capital by 33.3% to SAR 320 million, through capitalizing a portion of retained earnings, by distributing one bonus share per each three shares held, Argaam's available data showed.