CMA approves Advanced’s capital hike to SAR 2.6 bln via 20.1% bonus issue

A manufacturing facility of Advanced Petrochemical

The Capital Market Authority (CMA) approved the request from Advanced Petrochemical Co. (Advanced) to increase its capital from SAR 2.16 billion to SAR 2.60 billion.

The capital hike will be by issuing one bonus share for every five existing shares owned by shareholders who are registered in the Securities Depository Center (Edaa) by the close of the second trading day after the due date that will be determined later by the company's board.

The increase will be paid by transferring SAR 261.16 million from the statutory reserve account, and transferring SAR 174.11 million from the retained earnings account.

Consequently, the company's outstanding shares will increase from 216.47 million to 260 million.

The CMA said that the company's extraordinary general assembly should be held within six months from this approval date and satisfy all regulatory requirements and applicable laws.

Advanced’s board of directors recommended, on Jan. 25, a 20.1% capital increase to SAR 2.60 billion from SAR 2.16 billion by distributing one bonus share for every five shares held.