CMA approves Pan Gulf's 50% capital hike via bonus issue

Logo of Pan Gulf Marketing Co.

The Capital Market Authority (CMA) approved the application of Pan Gulf Marketing Co. to increase its capital from SAR 50 million to SAR 75 million via a bonus issue, the market regulator said in a statement today, May 7.

Accordingly, one bonus share will be issued for every two shares held by shareholders registered with the Securities Depository Center (Edaa) by the close of the second trading day after the record date, to be determined later by the company's board.

The capital top-up will be funded by transferring SAR 25 million from retained earnings. Thus, the company's shares will increase by 2.5 million to 7.5 million.

The CMA added that Pan Gulf's extraordinary general meeting (EGM) should be held within six months from this approval date, provided the company satisfies all regulatory requirements and requisite procedures.

Last March, Pan Gulf's board recommended a capital increase of 50% through bonus share distribution, in order to support the company's capital base and fund future activities.