CMA green lights Alkhorayef Water's capital hike via 40% bonus issue

Logo of Alkhorayef Water and Power Technologies Co. 

Alkhorayef Water and Power Technologies Co. obtained the approval of the Capital Market Authority to increase its capital from SAR 250 million to SAR 350 million through issuing one bonus share for every 2.5 existing shares owned by shareholders who are registered in the shareholders registry at the Securities Depository Center (Edaa) as of the closing of the second trading day after the due date which will be determined later by the company's board, according to a statement.

Such increase will be paid by transferring SAR 100 million from retained earnings account to the company's capital; thus increasing outstanding shares from 25 million to 35 million.

The extraordinary general assembly shall be held within six months from this approval date and the company shall satisfy all regulatory requirements and applicable laws, said the regulator.

The company's board of directors recommended, on July 23, increasing capital by 40% to SAR 350 million via a 1-for-2.5 bonus-share distribution, which will be financed by capitalization of SAR 100 million from retained earnings.

The capital increase is aimed to support the company's capital base in line with strategic growth objectives and expand activities in the Kingdom as a whole and the water and wastewater sector in particular, according to Argaam's data.