Riyadh – Mubasher: The Capital Market Authority (CMA) has approved a request from ASG Plastic Factory Company to double its share capital through the issuance of bonus shares.
The resolution authorizes the company to increase its total capital from SAR 70.50 million to SAR 141 million, according to a bourse disclosure.
This strategic move involves the capitalization of internal reserves to strengthen the company’s formal capital base and will result in the issuance of one bonus share for every existing share held by eligible shareholders.
Under the terms of the issued approval, ASG Plastic will undergo a significant expansion of its equity structure.
The capital hike will be facilitated by the issuance of 7.05 million new shares, effectively doubling the company’s outstanding shares from the current 7.05 million to a total of 14.10 million shares.
This one-for-one bonus issue is designed to distribute the company's accumulated internal funds into its share capital.
The financial mechanism for this increase relies entirely on the company’s internal accounts, requiring no additional cash contributions from the shareholders. An amount of SAR 46.60 million will be transferred from the company’s Retained Earnings account, while the remaining SAR 23.89 million will be sourced from the Share Premium account.
This process of capitalization converts these reserves into permanent share capital on the company’s balance sheet.
Eligibility for the bonus shares is tied to the shareholders of record at the Security Depository Center (Edaa). The regulatory announcement specifies that shareholders who are registered in the company's registry at the closing of the second trading day following the due date will be eligible for the issuance.
The specific due date for this corporate action will be determined at a later time by the company’s board of directors.
To finalize the capital increase, ASG Plastic Factory is required to convene an Extraordinary General Assembly (EGM). According to the CMA’s stipulations, this assembly must be held within six months of the approval date. During the EGM, shareholders will be presented with the proposal for final endorsement.
The company is also mandated to satisfy all other regulatory requirements and adhere to the applicable laws governing listed companies in the Kingdom of Saudi Arabia.
The approval represents a significant milestone in the company’s financial trajectory, reflecting the conversion of its retained earnings and share premiums into equity.
By doubling its share count, the company adjusts its market capitalization structure in alignment with its internal financial growth. The successful execution of this increase remains contingent upon the upcoming shareholder vote and the completion of all necessary legal and administrative formalities within the prescribed six-month window.
ASG Plastic recently signed an industrial land lease contract with the Saudi Authority for Industrial Cities and Technology Zones (MODON) for a plot in Sudair Industrial and Business City.
