Saudi Aramco’s storage tanks
Shareholders of Saudi Arabian Oil Co. (Saudi Aramco) will vote on the board’s recommendation to increase capital to SAR 75 billion from SAR 60 billion via the capitalization of SAR 15 billion from the retained earnings, during the extraordinary general meeting (EGM) slated for May 12.
Accordingly, Saudi Aramco will distribute one bonus share for every 10 existing shares, the oil giant said in a statement to Tadawul.
|
Details of Capital Increase – Bonus Issue |
|
|
Current Capital |
SAR 60 bln |
|
New Capital |
SAR 75 bln |
|
Percentage of Increase |
25% |
|
Number of Shares* |
200 bln |
|
New Number of Shares |
220 bln |
|
Bonus Issue |
1 bonus share for every 10 existing shares |
|
Reason |
To maximize returns via the distribution of sustainable and progressive dividends, in line with future plans and growth in free cash flows, in addition to creating long-term value through investments in available opportunities |
|
Method |
Capitalization of SAR 15 billion from retained earnings |
*Saudi Aramco shares have no nominal value
Fractional shares, if any, will be grouped into a single portfolio to be sold at the market price and the cash proceeds will be distributed to eligible shareholders pro rata, within 30 days maximum.
Shareholders of record on the second trading day following the date of the extraordinary general meeting, will be eligible for the bonus shares.
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