CMA OKs Aramco's capital hike via bonus issue

Logo of Saudi Aramco

The Capital Market Authority (CMA) gave the green light for Saudi Arabian Oil Co. (Saudi Aramco) to increase its capital from SAR 75 billion to SAR 90 billion, through a one-for-10 bonus share distribution, according to the CMA website.
 

Shareholders of record registered with the Security Depository Center (Edaa) by the close of the second trading day following the record date, to be determined later, will be eligible for the bonus share distribution.
 

The capital increase will be financed through transferring SAR 15 billion from the retained earnings account.
 

The extraordinary general meeting should be held within six months from this approval date, and the company should satisfy all regulatory requirements and applicable laws.
 

Last month, Saudi Aramco’s board of directors recommended increasing capital to SAR 90 billion from SAR 75 billion through the capitalization of SAR 15 billion from retained earnings, according to data available with Argaam.

*There is no fair value for Saudi Aramco’s share.