CMA green lights AICTEC capital rise via 28% bonus issue

Logo of Advance International Company for Communication and Information Technology (AICTEC)

The Capital Market Authority (CMA) approved Advance International Company for Communication and Information Technology’s (AICTEC) request to raise its capital from SAR 25 million to SAR 32 million through a one-for-three bonus issue.

Eligible shareholders are those registered with the Securities Depository Center (Edaa) as of the close of the second trading day after the record date, which will be determined later by the company's board, according to a statement.

The increase will be through transferring SAR 7 million from retained earnings to AICTEC’s capital. Consequently, the number of shares will surge from 2.5 million to 3.2 million.

CMA added that the company's extraordinary general assembly shall be held within six months from the approval date, provided that all regulatory requirements and applicable laws are met.

AICTEC’s board recommended, on April 9, a capital top-up to SAR 32 million from SAR 25 million through a 28% bonus share distribution. The move is aimed at strengthening the firm’s strategic growth, future expansions and aspirations, as well as its financial solvency and balance sheet, according to Argaam's data.