Equipment House gets CMA nod on capital hike via bonus shares

Logo of Scientific & Medical Equipment House Co. (Equipment House)

The Capital Market Authority (CMA) approved Scientific and Medical Equipment House Co.’s (Equipment House) request to increase its capital from SAR 200 million to SAR 300 million, through a one-for-two bonus share issue, to shareholders registered with the Securities Depository Center (Edaa) by the close of the second trading day following the record date, to be announced later.

The capital hike will be financed by transferring SAR 100 million from retained earnings to Equipment House’s capital, thus increasing the company's outstanding shares from 20 million to 30 million.

The regulator noted that Equipment House’s extraordinary general meeting must be held within six months of this approval and the company shall satisfy all regulatory requirements and applicable laws.

The company's board proposed, on June 11, a 50% capital hike through the distribution of one bonus share for every two shares held, in a bid to support strategic expansion amid its robust financial stability and the resilience of its financial standing, according to Argaam's data.