CMA sets additional requirements for listed firms repeatedly amending capital: ElKuwaiz

Mohammed ElKuwaiz, Chairman of Capital Market Authority (CMA)

Mohammed ElKuwaiz, Chairman of Capital Market Authority (CMA), said that the Saudi market regulator is setting additional requirements for listed companies that increase or decrease their capital repeatedly.

The increase of companies' capital is only carried out upon the approval of their shareholders, ElKuwaiz added in a session organized by Saudi Economic Association (SEA).

He also said that, in 2019, the capital increases of listed companies totaled SAR 500 million. However, in 2020, they doubled nearly 10 times to SAR 5-6 billion due to the pandemic and other reasons.

CMA sees this as a positive phenomenon, which helped companies continue their operations and overcome the difficulties caused by the pandemic, as it provided an extra source of finance, according to ElKuwaiz.