CMA approves Edarat's 100% capital hike via bonus shares

Logo of Edarat Communication and Information Technology Co.

The Capital Market Authority (CMA) approved Edarat Communication and Information Technology Co.'s application to increase its capital from SAR 25.2 million to SAR 50.4 million, the market regulator said in a statement today, March 24.

The capital hike will be carried out through the issuance of one bonus share for every share held by shareholders registered with the Securities Depository Center (Edaa) by the close of the second trading day after the record date, which will be determined later by Edarat's board.

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The move will be funded by transferring SAR 25.2 million from retained earnings to the company's capital, according to the CMA.

As a result, the number of shares will increase from 2.52 million to 5.04 million, reflecting an addition of 2.52 million shares.

The market regulator stated that the company's extraordinary general meeting (EGM) should be held within six months of this approval date, provided satisfying all the relevant regulatory requirements and applicable laws.

In December 2024, Edarat’s board recommended a 100% capital top-up, by distributing one bonus share for every share held. The move aims to bolster the company’s capital base and support future growth initiatives, reinforcing its strategy to drive solid expansion in the coming years, according to Argaam data.

It is worth noting that Edarat’s board of directors recently approved the company's transition from the Nomu-Parallel Market to the Main Market (TASI).