CAIRO (Reuters) - Egyptian textiles company Arab Cotton Ginning said on Wednesday 27 January it had received the regulator's approval to distribute one free share for each 10 owned as a dividend.

"This is the dividend of last October ... distribution should be sometime next week," Hany Olama, chairman of Arab Cotton Ginning, told Reuters.

The shares will capitalise reserves of 120 million Egyptian pounds.

Arab Cotton Ginning had 251.74 million shares, as of December 31, 2009, according to Reuters data. The firm's shares were trading 4.4 percent higher at 5.24 pounds by 0936 GMT.