Logo of Electrical Industries Co.
The Capital Market Authority (CMA) approved the application received from Electrical Industries Co. (EIC) to increase its capital to SAR 562.5 million from SAR 450 million via a one-for-four bonus share distribution, according to a statement today, May 3.
Eligibility for the bonus share distribution will be to shareholders registered with the Securities Depository Center Co. (Edaa) as of the close of the second trading day after the record date, which will be determined later by the company's board, the CMA added.
The increase will be financed by transferring SAR 112.50 million from retained earnings. Consequently, the company's shares will rise from 45 million to 56.25 million.
EIC should convene an extraordinary general meeting (EGM) within six months from this approval date and should satisfy all regulatory requirements and applicable laws, the market regulator stated.
In March, the company's board of directors recommended increasing capital by 25% through a 1:4 bonus share distribution, Argaam's data showed.
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