Saturday 9 January 2021

Nineteen Tadawul-listed firms raise capital by $3.36bln in 2020 | ZAWYA MENA Edition

Nineteen Tadawul-listed firms raise capital by $3.36bln in 2020 | ZAWYA MENA Edition

Nineteen Tadawul-listed companies have hiked their capital by SAR 12.57 billion during 2020, whereas eleven others lowered their capital meanwhile.

The capital hike processes were implemented by way of a rights issue, issuance of bonus share, or acquisitions, with the aim to expand the companies’ business size, raise growth rates, support capital base, or enhance resources.

According to a Mubasher analysis, the overall value of the capital hike transactions that were carried out via a rights issue surpassed SAR 6.061 billion.

Moreover, capital raise transactions implemented via issuance of bonus shares amounted to SAR 5.549 billion, mostly dominated by Alinma Bank, which issued SAR 5 billion worth of bonus shares.

Last April, the extraordinary general meeting (EGM) of Alinma Bank approved a capital raise by issuing one bonus share for every three original existing shares.

The bank's capital rose by 33.3% to SAR 20 billion from SAR 15 billion in a bid to enhance its resources to achieve good growth rates in the upcoming years.

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