CMA approves Leen Alkhair capital hike to SAR 81.6 mln via bonus issue

Logo of Leen Alkhair Trading Co.

The Capital Market Authority (CMA) gave the go-ahead for Leen Alkhair Trading Co.'s request to increase its capital from SAR 40.8 million to SAR 81.6 million through a one-for-one bonus share distribution, according to the market regulator website.

Shareholders registered with the Security Depository Center (Edaa) at the end of the second trading day after the record date are eligible for the bonus share distribution.

The record date will be determined by the board of directors later.

The capital hike will be financed through transferring SAR 40.8 million from the retained earnings account to the company's capital.

Consequently, the number of outstanding shares will increase from 4.08 million to 8.16 million.

The extraordinary general meeting will be held within six months from the CMA approval date and the company will satisfy all regulatory requirements and applicable laws.

The board of directors amended, on May 20, its previous capital increase recommendation to 100% from SAR 40.80 million to SAR 81.60 million. The previous recommendation was to raise capital by 74% to SAR 71 million, Argaam earlier reported.