Riyadh – Mubasher: Saudi Arabia’s Capital Market Authority (CMA) passed the requests of Saudi Arabian Mining Company (Ma’aden) and Almasane Alkobra Mining Company (Amak) to raise their capital by issuing bonus shares.
Ma’aden aims to increase its capital to SAR 36.91 billion from SAR 24.61 billion by granting one bonus share for every two owned shares to the eligible stakeholders. Therefore, the outstanding shares will increase by 1.23 billion to 3.69 billion shares from 2.46 billion shares.
The capital hike transaction will be carried out by transferring SAR 2.50 billion from the statutory reserve account and SAR 9.79 billion from the retained earnings account, according to a bourse disclosure.
It is worth noting that the board members of Ma’aden recommended the 50% capital increase on 12 February 2023.
As for Amak, the CMA agreed on increasing the capital from SAR 660 million to SAR 900 million through the issuance of 24 million shares, equivalent to one bonus share for every 2.75 existing shares owned by the eligible shareholders.
The transaction will be executed by transferring SAR 240 million from the share premium account. Therefore, Amak’s outstanding shares will stand at 90 million following the increase, instead of 66 million shares.
Noteworthy to mention that the CMA greenlighted the two capital raise requests on 13 April 2023.
In 2022, Ma’aden achieved higher annual net profits after Zakat and tax of SAR 9.31 billion, while Amak posted lower net profits worth SAR 126.33 million.
