CMA approves Arabian Pipes 50% capital hike via bonus issue

Logo of Arabian Pipes Co.

The Capital Market Authority (CMA) approved Arabian Pipes Co.’s request to increase its capital from SAR 100 million to SAR 150 million via a bonus issue, the market regulator said in a statement today, May 23.

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 50 million from retained earnings. Thus, the company's shares will increase by five million to 15 million.

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

On Nov. 9, 2023, Arabian Pipes' board decided to cancel a previous recommendation to increase capital via a rights issue. Instead, it recommended a 50% capital hike through a bonus share distribution.