CMA nods to Watani Steel's 50% capital hike via bonus issue

Logo of Watani Iron Steel Co. (Watani Steel)

The Capital Market Authority (CMA) approved the request received from Watani Iron Steel Co. (Watani Steel) to increase its capital by 50% to SAR 181.65 million from SAR 121.1 million via a one-for-two bonus share distribution, according to a statement today, April 5.

Eligibility for the bonus distribution will be to shareholders registered with the Securities Depository Center Co. (Edaa) as of the close of the second trading day after the record date, which will be determined later by the company's board, the CMA added.

The increase will be financed by transferring SAR 60.55 million from retained earnings. Consequently, the number of the company's shares will rise from 12.11 million to 18.17 million.

The extraordinary general assembly shall be held within six months from this approval date and the company will satisfy all regulatory requirements and applicable laws, the market regulator stated.

Watani Steel’s board of directors recommended, during its meeting on March 23, increasing the company’s capital by 50% to SAR 181.65 million via a one-for-two bonus-share distribution, Argaam’s data showed.