CMA rejects Arab Sea’s capital hike request

The Capital Market Authority (CMA) rejected Arab Sea Information Systems Co.’s application to increase its capital for purchasing a real estate asset.

The company submitted the application to increase capital from SAR 100 million to SAR 104.38 million, through the issuance of 437,500 ordinary shares to purchase an asset, the market regulator said in a statement.

After studying the application under the Capital Market Law and its executive regulations, the CMA board disapproved the application on violations of the Companies Law and the Corporate Governance Regulation due to a related party transaction and conflict of interest.

Source : Argaam