CMA approves Development Works' 20% capital hike through bonus share distribution

The Capital Market Authority (CMA) gave the go-ahead for Development Works Food Co. to increase its capital by 20% from SAR 25 million to SAR 30 million, through one-for-five bonus share distribution, according to a CMA statement.

Shareholders registered at the Security Depository Center (Edaa) at the end of the second trading day following the due date, which will be determined later by the company's board of directors, are entitled to the bonus share distribution.

Such increase will be financed by transferring SAR 3.08 million from retained earnings and SAR 1.92 million from the statutory reserve, the statement added.

Consequently, the outstanding shares will increase by 0.5 million shares from 2.50 million to 3 million.

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