CMA approves AlBaha’s capital hike prospectus

Saudi Arabia’s Capital Market Authority (CMA) has approved AlBaha Investment and Development Co.’s prospectus for its capital increase ahead of the company’s acquisition of Al-Marakiz Al-Raqiyah Ltd., CMA said in a statement to Tadawul Monday.

AlBaha will increase its capital to SAR 295 million from SAR 150 million by issuing 14.5 million ordinary shares.

AlBaha inked an agreement in October to buy the supermarket operator for SAR 145 million.

The prospectus of the capital hike will be published, according to CMA’s regulations, at a later date before the extraordinary general assembly meeting.

The market regulator urged the shareholders to study the prospectus carefully or hire a financial advisor if needed.

CMA’s approval of the prospectus is not to be considered a recommendation, but rather a declaration that it has met the legal requirements, the statement added.