MEPCO gets CMA nod on 33% capital hike through bonus issue

Logo of MEPCO

The Capital Market Authority (CMA) approved an application from Middle East Paper Co. (MEPCO) to increase its capital from SAR 500 million to SAR 666.67 million, the market regulator said in a statement.

The capital will be raised through the issuance of one bonus share for every three 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 MEPCO's board.

CMA added that such increase will be paid by transferring an amount of SAR 166.67 million from retained earnings account to the company's capital.

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

Last August, MEPCO's board approved a 33% capital increase by 1-for-3 bonus share distribution.