Rasan gets CMA nod on capital hike through capitalization issue

Logo of Rasan Information Technology Co.

The Capital Market Authority (CMA) approved Rasan Information Technology Co.'s request for a capital increase from SAR 75.8 million to SAR 77.51 million through capitalization issue, the company said today, Dec. 3, in a statement to Tadawul.

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The capital top-up will be paid by transferring an amount of SAR 171 million from the retained earnings account to the company's capital, the statement added.

Consequently, the company's outstanding shares will rise from 75.8 million to 77.51 million shares.

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

The company’s board of directors recommended, last October, increasing capital by 2.25% from SAR 75.8 million to SAR 77.51 million by capitalizing part of the retained earnings, through the issuance of 1.71 million ordinary shares to be allocated for the employee stock program (long-term incentive plan), according to Argaam’s data.