CMA approves Al-Babtain capital hike to SAR 639.47 mln via bonus issue

Logo of Al-Babtain Power and Telecommunication Co.

The Capital Market Authority (CMA) gave the green light for Al-Babtain Power and Telecommunication Co. to increase its capital from SAR 426.31 million to SAR 639.47 million, according to the CMA website.

The capital hike will be effected through a one-for-two bonus share distribution to shareholders of record who are registered with the Security Depository Center Co. (Edaa) as of the close of the second trading day after the record date that will be determined later by the board.

The capital increase will be financed through transferring SAR 213.16 million from the retained earnings account to the company's capital.

Consequently, the company's outstanding shares will increase from 42.63 million to 63.95 million.

The extraordinary general meeting will be held within six months from this approval date and the company will satisfy all regulatory requirements and applicable laws.​

In June, the board of directors recommended increasing the company’s capital by 50% through a one-for-two bonus share distribution, through capitalizing SAR 213.2 million from retained earnings. This comes as part of the company’s plan to align the capital base with its future vision for growth and expansion, besides investing in the many available opportunities, according to data available with Argaam.

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