CMA approves APICO’s 50% capital hike via bonus issue

Logo of Arabian Plastic Industrial Co. (APICO)

The Capital Market Authority (CMA) approved Arabian Plastic Industrial Co.'s (APICO) request for a capital increase of 50% through a one-for-two bonus issue, according to a statement.

Subscription eligibility will be limited to shareholders registered with the Security Depository Center (Edaa) as of the closing of the second trading day after the due date, which will be determined later by the company's board.

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The capital top-up will be paid by transferring SAR 25 million from the retained earnings account to the company's capital. Accordingly, the number of shares will increase from SAR 5 million to SAR 7.5 million, the statement added.

The extraordinary general assembly shall be held within six months of this approval date, and the company shall satisfy all regulatory requirements and applicable laws, the CMA explained.

APICO’s board of directors recommended in November increasing capital by 50% through a one-for-two bonus share distribution.

The capital hike will be financed through capitalizing SAR 25 million from retained earnings. It is aimed at enhancing the company's strategic growth plan, addressing expansion needs and aspirations, as well as emphasizing its financial solvency and strong financial position, according to data available to Argaam.