Al Hammadi gets CMA nod for capital increase to SAR 1.6 bln

Al Hammadi's building

Al Hammadi Company for Development and Investment got the approval of the Capital Market Authority (CMA) to increase its capital to SAR 1.6 billion from SAR 1.2 billion, through issuing one bonus share for every three shares held.

Shareholders registered with the Securities Depository Center (Edaa) by the close of the second trading day after the record date – to be determined by the board later – will be eligible for the distribution, the market regulator said in a statement today, May 18.

The increase will be financed by transferring SAR 338.06 million from the company's retained earnings and SAR 61.94 million from its statutory reserve.

Accordingly, Al Hammadi will raise the total number of shares from 120 million to 160 million.

An extraordinary general meeting (EGM) will be held within six months from this approval date and the company will fulfill all regulatory requirements and applicable laws by then.

In March, Al Hammadi's board of directors recommended a 33% capital increase to SAR 1.6 billion through issuing one bonus share for every three shares held, Argaam earlier reported.