Saudi market regulator OKs Al Hammadi Development's capital raise

Saudi Arabia’s market regulator, the Capital Market Authority (CMA), approved on Wednesday the request of Al Hammadi Company for Development and Investment to raise its capital from SAR 750 million to SAR 1.2 billion.

The developer will issue three bonus shares for every five existing shares owned by shareholders registered with the company by the date of the extraordinary general assembly meeting. 

Al Hammadi will transfer SAR 392 million from its legal reserves account and SAR 58 million from its retained earnings account to its capital in order to pay for the increase. 

Shares will increase from 75 million to 120 million.

Bonus shares eligibility is limited to shareholders listed in the company’s registry at the close of trading on the day of the extraordinary general assembly meeting, which will be determined later by the board.

The assembly meeting should be held within six months from the approval date, according to market rules. 

The CMA’s approval is conditional on the company satisfying regulatory requirements and any other applicable laws.