Logo of Riyadh Steel Co.
Riyadh Steel Co.’s board of directors recommended a 40% capital increase through a 4-for-10 bonus share distribution, according to a statement to Tadawul.
The capital increase will be financed through capitalizing SAR 20 million from retained earnings.
|
Current Capital |
SAR 50 mln |
|
Number of Shares |
5 mln |
|
Increase Percentage |
40% |
|
Method |
Offering four bonus shares for every 10 shares held, via capitalizing SAR 20 mln from retained earnings |
|
New Capital |
SAR 70 mln |
|
New Number of Shares |
7 mln |
|
Reason |
To boost the financial position and support future growth plans |
|
Record Date |
Shareholders of record and those registered with Edaa on the second trading day following the record date |
Fractional shares, if any, will be compiled in one portfolio for all shareholders and will be offered at the market price. The proceeds are to be distributed pro rata within 30 days maximum.
The bonus share distribution is subject to the approval of the regulatory authorities and the extraordinary general meeting (EGM).
In a separate statement, Riyadh Steel pointed out that the board also proposed to split the stock’s nominal value from SAR 10 to SAR 1.
The proposal is subject to the approval of the competent authorities and the company’s shareholders.
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