Halwani obtains CMA approval on capital increase

Saudi Arabia’s Capital Market Authority (CMA) approved Halwani Bros. Co.’s request for capital increase through bonus share distribution, according to a statement.

The capital will be increased from SAR 314.3 million to SAR 353.57 million, through one bonus share for every eight shares.

The increase will be financed by transferring SAR 39.28 million from the statutory reserve, increasing the share capital by 3.93 million, from 31.43 million to 35.36 million shares.

The company’s extraordinary general meeting (EGM) will be held within six months of the CMA’s approval, the statement added.

Halwani's board of directors, on Dec. 27, 2020, recommended a 12.5% capital increase through one-for-eight bonus share distribution and a 15% cash dividend at SAR 1.5 a share for the fiscal year 2020, Argaam reported.