Saudi’s Makkah Construction To Hike Capital to $532mln via Bonus Shares

Saudi Arabia’s Makkah Construction and Development Company (MCDC) will increase its capital to SAR 2 billion ($532 million) via a bonus share issue.

The company has obtained the approval from the Capital Market Authority (CMA) to hike its capital from around SAR1.6 billion by issuing 0.213 bonus shares for every existing share.

The plan is to transfer more than SAR 351.8 million from the statutory reserve account to MCDC’s capital, thereby increasing the outstanding shares from 164.8 million to 200 million.

MCDC will still need to convene an extraordinary general assembly from the approval date and comply with regulatory requirements, the market authority said.