Riyadh – Mubasher: The Capital Market Authority (CMA) of Saudi Arabia has issued a resolution approving a request from Almuneef Company for Trade, Industry, Agriculture and Contracting to increase its capital base by SAR 19 million.
The approval facilitates raising the company’s capital from SAR 38 million to SAR 57 million, according to an official statement.
This 50% increase will be executed through the issuance of bonus shares to the company’s existing shareholders, funded entirely through the capitalization of the firm’s internal reserves.
The approved capital restructuring involves the issuance of one bonus share for every two existing shares held by registered shareholders.
Accordingly, this corporate action will result in the creation of 19 million new shares, bringing the total number of the company’s outstanding shares to 57 million from 38 million shares prior to the transaction.
The increase will be financed from Almuneef retained earnings account, as this method allows the company to strengthen its formal capital structure by utilizing accumulated profits rather than seeking external cash contributions from its investor base.
As part of the regulatory requirements set forth by the CMA, Almuneef must convene an extraordinary general assembly, within six months of the CMA’s approval date, to finalize the capital increase.
