United Electronics Co.’s (eXtra) shareholders approved a 20% capital hike to SAR 600 million from SAR 500 million through the issue of bonus shares, during the extraordinary general meeting (EGM) held on May 5, 2020.
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Key Figures of the Capital Hike |
|
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Current Capital |
SAR 500 mln |
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Number of shares |
50 mln |
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Hike (%) |
20% (1 share for every 5 outstanding shares) |
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New Capital |
SAR 600 mln |
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New number of shares |
60 mln |
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Record date |
May 05, 2020 (The second day following the record date) |
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Driver |
To support the company’s financial position |
Shareholders also approved the buyback of 100,000 shares to retain them as treasury shares under the Employees Long-Term Incentive Program (LTIP), financed from the cash dividends of the treasury shares in the LTIP.
In addition, they authorized the board of directors to complete the repurchase process in a period of 12 months maximum from the general meeting date, and the company may retain its treasury shares for a maximum period of 8 years.
Shareholders also delegated the board of directors to distribute interim dividends on a quarterly or semi-annual basis for FY2020.
They further approved the board of directors’ recommendation to distribute a 12.5% cash dividend, or SAR 1.25 per share, for the second half of 2018, in addition to the distribution of 22.5% cash dividend, or SAR 2.25 per share, for FY2019.
In a separate statement, the Saudi Stock Exchange (Tadawul) said that the fluctuation limits, on Wednesday, for eXtra will be based on a share price of SAR 51.90.
Furthermore, the Securities Depository Center (Edaa) will deposit the additional shares into investor’s portfolios by Sunday, May 10, 2020.
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