National Building gets go-ahead for 100% capital hike

The Capital Market Authority (CMA) approved a request from National Building and Marketing Co. (NBM) to raise its capital to SAR 120 million from SAR 60 million through the issuance of one bonus share for every one share held, the market regulator said in a bourse statement.

The increase will be financed by transferring SAR 3 million from the company’s other reserves and SAR 57 million from retained earnings to capital.

The number of outstanding shares will be raised from 6 million to 12 million. The extraordinary general meeting shall be held within six months from this approval date and the company shall satisfy all regulatory requirements and applicable laws, the market regulator added.

In July, NBM’s board of directors recommended a 100% capital increase to boost and strengthen the company’s capital base and future activities, Argaam reported.