Tadawul trading screen
Several Saudi-listed companies on TASI and Nomu decided to split the nominal value of their shares in a move aimed at improving liquidity through increasing the number of shares available for trading, following the enforcement of the new Companies Law.
The new Companies Law stipulates, in Article 103, that shares may be divided into shares of lower nominal value, or merged to shares of higher nominal value, and the competent authority may set the necessary controls therefore.
So far, the general assemblies of 42 listed companies, including 18 companies in the main market- TASI and 24 companies in the Parallel Market-Nomu, approved the splitting of the nominal value of their shares from SAR 10 to different values.
At the close of Dec. 20, the shares of most companies that split their shares in TASI declined, while the performance of Nomu-listed companies varied, as shown in the following table:
|
Performance of Companies Announcing Stock Split |
|||||
|
Company |
New nominal value |
Adjusted price* |
Start date of trading at new price |
Close as of Dec. 20 |
Change |
|
TASI |
|||||
|
Al Kathiri |
0.50 |
3.47 |
April 13 |
2.67 |
(23%) |
|
Retal |
1.00 |
12.22 |
May 3 |
8.17 |
(33%) |
|
Jarir |
1.00 |
16.60 |
May 31 |
15.14 |
(9%) |
|
Al Othaim |
1.00 |
13.68 |
June 6 |
13.00 |
(5%) |
|
2P |
1.00 |
23.50 |
June 8 |
23.74 |
1 % |
|
Shams |
0.50 |
0.87 |
June 13 |
0.60 |
(31%) |
|
Sadr |
1.00 |
4.42 |
June 15 |
3.18 |
(28%) |
|
Thob Al Aseel |
1.00 |
5.25 |
June 21 |
4.78 |
(9%) |
|
Alhokair Group |
1.00 |
2.52 |
June 22 |
2.10 |
(15%) |
|
Saudi Chemical |
1.00 |
3.77 |
June 22 |
4.04 |
7 % |
|
Batic |
1.00 |
2.34 |
22 June |
2.18 |
(7%) |
|
BinDawood Holding |
1.00 |
7.43 |
July 2 |
5.98 |
(20%) |
|
Alsaif Gallery |
1.00 |
9.30 |
July 2 |
8.82 |
(5%) |
|
Al-Baha |
0.10 |
0.19 |
July 5 |
0.13 |
(32%) |
|
Anaam |
0.50 |
1.29 |
July 9 |
0.92 |
(29%) |
|
Fitaihi |
1.00 |
3.71 |
Aug. 9 |
3.02 |
(19%) |
|
Arab Sea |
1.00 |
7.01 |
Sept. 14 |
7.10 |
1 % |
|
Electrical Industries |
0.50 |
2.05 |
Oct. 1 |
2.87 |
40 % |
|
Nomu |
|||||
|
Tadweeer |
1.00 |
9.26 |
April 6 |
8.18 |
(12%) |
|
Burgerizzr |
1.00 |
8.39 |
June 1 |
9.68 |
15 % |
|
Ladun |
1.00 |
1.81 |
June 1 |
5.41 |
199 % |
|
Future Care |
0.10 |
16.00 |
June 12 |
15.88 |
(1%) |
|
Rawasi |
1.00 |
5.90 |
June 13 |
5.30 |
(10%) |
|
IHR |
0.50 |
3.24 |
June 14 |
3.74 |
15 % |
|
Banan |
1.00 |
6.60 |
June 15 |
7.00 |
6 % |
|
Academy of Learning |
1.00 |
7.05 |
June 15 |
8.80 |
25 % |
|
Azm |
0.50 |
12.44 |
June 19 |
10.66 |
(14%) |
|
WAJA |
0.50 |
6.00 |
June 20 |
6.07 |
1 % |
|
Nofoth |
1.00 |
16.82 |
June 20 |
23.00 |
37 % |
|
KEIR |
1.00 |
5.74 |
June 21 |
3.66 |
(36%) |
|
CMCER |
1.00 |
5.90 |
June 21 |
5.59 |
(5%) |
|
Fesh Fash |
1.00 |
17.50 |
July 2 |
7.14 |
(59%) |
|
MOBI |
1.00 |
7.37 |
July 2 |
10.12 |
37 % |
|
Knowledge Tower |
1.00 |
7.35 |
July 6 |
6.29 |
(14%) |
|
GAS |
1.00 |
7.10 |
Aug. 9 |
7.31 |
3 % |
|
Molan |
1.00 |
4.60 |
Aug. 14 |
5.49 |
19 % |
|
AICTEC |
0.50 |
3.75 |
Sept. 26 |
3.46 |
(8%) |
|
Mayar |
0.50 |
5.69 |
Oct. 1 |
5.25 |
(8%) |
|
Saudi Top |
1.00 |
8.15 |
Oct. 9 |
7.38 |
(9%) |
|
Watani Steel |
1.00 |
2.84 |
Oct. 9 |
2.55 |
(10%) |
|
Alwasail Industrial |
1.00 |
1.94 |
Nov. 16 |
2.18 |
12 % |
|
Jahez |
0.50 |
26.00 |
Nov. 30 |
25.10 |
(3%) |
On the other hand, five companies rejected the stock split proposals for several reasons, the most notable of which is the infeasibility of the process.
|
Performance of Companies Rejecting Stock Split |
||||
|
Company |
Decision Details |
Price on Decision Day |
Close as of Dec. 20 |
Change |
|
Naqi Water |
On Oct. 18, the general assembly of the company rejected the board’s recommendation to split the nominal value from SAR 10 to 10 halalas. |
66.10 |
78.30 |
18% |
|
ACIG |
On Dec. 6, the board decided to scrap its decision to split the nominal value into 10 halalas due to the infeasibility of the decision following its recommendation to increase the company's capital to SAR 500 million. |
16.50 |
13.82 |
(16%) |
|
GACO |
In its meeting on Oct. 19, the general assembly rejected the split of the nominal value from SAR 10 to 50 halalas. |
13.92 |
17.92 |
29% |
|
Ghida Al-Sultan |
The company's board of directors decided to withdraw its decision regarding the split of the nominal value to SAR 0.50 due to the infeasibility of the decision in the current period. |
60.20 |
63.00 |
5% |
|
Al-Jouf Agricultural |
The EGM rejected the board’s recommendation to split the nominal value from SAR 10 to SAR 1. |
46.30 |
48.05 |
4% |
Meanwhile, six other companies are still awaiting the green light of their general assemblies to proceed with the stock split, as follows:
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