Logo ofMohammed Hadi Al Rasheed and Partners Co. (Al Rasheed)
The Capital Market Authority (CMA) approved Mohammed Hadi Al Rasheed and Partners Co.’s (Al Rasheed) application to increase its capital by 50% from SAR 120 million to SAR 180 million, the market regulator said in a statement today, Nov. 2. 
The CMA said the potential capital hike will be carried out via distributing bonus shares at one share per each two held shares. The issuance will be eligible to shareholders registered with the Securities Depository Center Co. (Edaa) by the end of the second trading day following the record date, which will be determined later by the company’s board of directors.
The capital top-up will be funded by transferring SAR 60 million from retained earnings. Thus, the number of the company’s shares will increase by 6 million from 12 million to 18 million.
The company’s extraordinary general assembly meeting will be held within six months from this approval date and the company shall satisfy all regulatory requirements and applicable laws.
According to Argaam’s data, Al Rasheed’s board of directors proposed in September raising the company’s capital by 50% through a one-for-two bonus share distribution.
Capital Increase Details
Current Capital
SAR 120 mln
Number of Shares
12 mln
Percentage of Capital Increase
50% (one-for-two bonus shares)
New Capital
SAR 180 mln
New Number of Shares
18 mln
Method
Capitalizing SAR 60 mln from retained earnings
Reason
The capital increase is part of the company’s strategy, in line with its plans for expansion and growth. It aims to create higher long-term value by investing in various opportunities available to the company, and reaffirming its financial solvency and strong financial position.
Record Date
Shareholders of record registered with Edaa by the end of the second trading day following the record date.
Al Rasheed said any fractional shares, if any, will be aggregated into a single portfolio for all shareholders and sold at market price. The proceeds will be distributed to eligible shareholders on a pro rata basis within 30 days from determining the entitlement to the new shares.
Logo ofMohammed Hadi Al Rasheed and Partners Co. (Al Rasheed)
The Capital Market Authority (CMA) approved Mohammed Hadi Al Rasheed and Partners Co.’s (Al Rasheed) application to increase its capital by 50% from SAR 120 million to SAR 180 million, the market regulator said in a statement today, Nov. 2.
The CMA said the potential capital hike will be carried out via distributing bonus shares at one share per each two held shares. The issuance will be eligible to shareholders registered with the Securities Depository Center Co. (Edaa) by the end of the second trading day following the record date, which will be determined later by the company’s board of directors.
The capital top-up will be funded by transferring SAR 60 million from retained earnings. Thus, the number of the company’s shares will increase by 6 million from 12 million to 18 million.
The company’s extraordinary general assembly meeting will be held within six months from this approval date and the company shall satisfy all regulatory requirements and applicable laws.
According to Argaam’s data, Al Rasheed’s board of directors proposed in September raising the company’s capital by 50% through a one-for-two bonus share distribution.
Capital Increase Details
Current Capital
SAR 120 mln
Number of Shares
12 mln
Percentage of Capital Increase
50% (one-for-two bonus shares)
New Capital
SAR 180 mln
New Number of Shares
18 mln
Method
Capitalizing SAR 60 mln from retained earnings
Reason
The capital increase is part of the company’s strategy, in line with its plans for expansion and growth. It aims to create higher long-term value by investing in various opportunities available to the company, and reaffirming its financial solvency and strong financial position.
Record Date
Shareholders of record registered with Edaa by the end of the second trading day following the record date.
Al Rasheed said any fractional shares, if any, will be aggregated into a single portfolio for all shareholders and sold at market price. The proceeds will be distributed to eligible shareholders on a pro rata basis within 30 days from determining the entitlement to the new shares.
