The board of Edarat Communication and Information Technology Company recommended a 100% capital increase to SAR 12.60 million from SAR 6.30 million, according to a bourse filing.

In order to carry out the capital hike transaction, the company will capitalise SAR 6.30 million from the reserves and retained earnings accounts by granting one bonus share for every existing share.

The number of shares will reach 1.26 million shares, compared to 630,000 shares prior to the raise.

Subject to regulatory approvals, the capital hike aims to reinforce Edarat Communication’s capital base and back its future activities, contributing to achieving good growth rates in the coming years.

Listing and trading the shares of Edarat Communication on the Parallel Market (Nomu) of the Saudi Exchange (Tadawul) began earlier today, 26 December.

It is worth noting that the Saudi firm is a 50% owned subsidiary of Al Moammar Information Systems (MIS).