Makkah Construction gets CMA nod on capital hike

Logo of Makkah Construction and Development Co.

The Capital Market Authority (CMA) approved Makkah Construction and Development Co.'s request to increase its capital from SAR 1.64 billion to SAR 2 billion, the market regulator said in a statement today Dec. 18.

The increase will be made through the issuance of 0.213 bonus shares for every share held by shareholders registered with the Securities Depository Center (Edaa) by the close of the second trading day after the record date, which will be determined later by the company’s board.

The capital raise will be funded by transferring SAR 351.84 million from the statutory reserve. As a result, the number of the company's shares will increase by 351.18 million from 164.82 million to 200 million.

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The CMA added that the company must hold its extraordinary general assembly (EGM) within six months of this approval, provided it meets all regulatory requirements and applicable laws.

On Dec. 2, the company’s board amended its recommendation for the capital increase to be funded from the statutory reserve, rather than retained earnings, according to data available to Argaam.