Saudi Arabia's Capital Market Authority (CMA) has approved, from January 2018 to the end of the first half of 2022, about 116 requests to increase listed companies' capital. The size of the capital increase surged by more than SR100 billion ($26.2 billion). 

 

This highlights the role that the CMA plays in the funding of listed companies and the economy at large.

 

In this regard, Abdullah Bin Ghannam, Capital Market Authority (CMA) Deputy for Listed Companies and Investment Products, stated that the capital increase requests approved by the CMA varied between the increase through a capitalisation issue, offering of rights issue, and debt conversion. 

 

The capital increase through capitalisation topped the requests with a ratio of 60.3%, followed by the offering of rights issue requests at 37.1%, and debt conversion requests reached 2.6% of total approvals.

 

Ghannam confirmed that the procedures for approving the requests to increase capital are passing through critical phases to study the requests since their announcement to completion. 

 

The CMA, he stated, recognizes the importance of the capital market as a channel for capital building and formation in order to support companies' growth and sustainability.

 

Within this context, it is essential to foster the market's role as a funding channel to establish and sustain the economy's building blocks, such as institutions, private companies, and development projects.

 

 As part of its strategic plan, the CMA will facilitate funding in the capital market by deepening the market and fostering its role in capital formation, developing sukuk and debt instruments market, and promoting the role of funds in order to contribute to the establishment of economic entities that support the growth of GDP and the national economy, he added.-TradeArabia News Service