Edarat board proposes 100% capital hike via bonus issue

08/12/2024 Argaam
Logo ofEdarat Communications and Information Technology Co.

Logo of Edarat Communications and Information Technology Co.

Edarat Communications and Information Technology Co.’s board of directors recommended, on Dec. 5, increasing capital by 100% through a one-for-one bonus share distribution.
The capital hike will be financed through capitalizing part of the retained earnings account, as follows: 
 

Capital Increase Details

Current Capital

SAR 25.20 mln

Number of Shares

2.52 mln

Percentage Increase

100% (one-for-one bonus share distribution)

Method

 By capitalizing SAR 25.20 mln from retained earnings

New Capital

SAR 50.40 mln

New Number of Shares

5.04 mln

Reason

To support and strengthen the capital base and future activities of the company, which will contribute to achieving good growth rates in the coming years

Record Date

Shareholders of record and registered with the Securities Depository Center Co. (Edaa) at the end of the second trading day after the record date
 
In a statement to Tadawul, the company said fractional shares, if any, will be compiled into one portfolio, to be offered for sale at market price. The proceeds will be distributed among eligible shareholders pro rata within 30 days maximum.
The move is still subject to obtaining the relevant approvals from official authorities and the extraordinary general meeting (EGM).
 

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