Saudi CMA approves SACO’s capital hike through bonus shares

Saudi Capital Market Authority (CMA) approved on Thursday a request by Saudi Company for Hardware (SACO) to increase capital to SAR 360 million, from SAR 240 million, through the issue of one bonus shares for every two shares held.

The company will recapitalize SAR 62.3 million from its retained earnings and SAR 57.7 million from statutory reserves to fund the capital increase, the market regulator said in a statement to Tadawul.

The number of shares will be increased to 36 million from 24 million.

Shareholders registered in the Security Depository Center (Edaa) on the second trading day after the due date, to be determined later by SACO’s board, will be eligible for the capital increase.

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