CMA approves eXtra’s 33.3% capital increase to SAR 800 mln via bonus shares

Logo of United Electronics Co. (eXtra)

The Capital Market Authority (CMA) approved an application from United Electronics Co. (eXtra) to increase its capital from SAR 600 million to SAR 800 million, the market regulator said in a statement.

The capital will be raised through the issuance of seven bonus shares for every 25 shares held by shareholders registered in the Securities Depository Center (Edaa) by the close of the second trading day after the record date, to be determined later by eXtra’s board.

The increase will be financed by transferring SAR 140 billion from the company’s retained earnings and SAR 60 million from the statutory reserve. Accordingly, the total number of shares will increase from 60 million to 80 million.

The CMA added that the company's extraordinary general assembly meeting (EGM) should be held within six months from this approval date, provided that eXtra shall satisfy all regulatory requirements and applicable laws.

In August, eXtra’s board recommended raising capital by 33.33% from SAR 600 million to SAR 800 million, Argaam earlier reported.

Capital Increase Details
Current Capital	SAR 600 mln
Number of Shares	60 mln
Percentage of Increase	33.33%
New Capital	SAR 800 mln
Number of Shares	80 mln
Method	- Distribution of 16.8 million bonus shares at 0.28 share for every one held share, or 7 shares for every 25 held shares. - Allocation of 3.2 million shares for the long-term employee stock option.
Reason	Support the company's financial position
Record Date	To shareholders owning the shares by the close of trading on the EGM date (to be announced later) and who are registered in Edaa by the end of second trading day after the EGM date.