Saudi Arabia’s Capital Market Authority has approved Saudi Aramco’s capital hike proposal to 90 billion Saudi riyals ($24 billion) from 75 billion Saudi riyals via a one-for-10 bonus issue.
 
The capital increase will be financed by transferring 15 billion riyals from the retained earnings, the CMA said in a statement.
 
The extraordinary general meeting should be held within six months from this approval date, and the company should satisfy all regulatory requirements and applicable laws.
 
Consequently, outstanding shares will increase to 242 billion from 220 billion.
 
The statement added that Saudi Aramco must hold an extraordinary general assembly within six months from the approval date and fulfill certain conditions.
 
Last month, the Saudi-listed oil firm reported a record annual net profit of $161.1 billion for 2022, up 46% from the previous year on higher energy prices, increased volumes sold and improved margins for refined products.

The board also recommended issuing bonus shares, which will enable eligible shareholders to receive one share for every 10 shares owned.

(Editing by Seban Scaria seban.scaria@lseg.com)