Budget Saudi board recommends 33.7% capital hike through bonus issue

Logo of United International Transportation Co. (Budget Saudi)

United International Transportation Co. (Budget Saudi) said its board of directors on June 4 recommended a 33.74% capital increase from SAR 781.7 million to SAR 1.04 billion, according to a statement to Tadawul.

The company will distribute 26.1 million bonus shares at one-for-three, making 33.33% of the planned capital hike. It will also allocate an additional 320,000 shares, representing 0.41% of post-increase capital, to be allocated for the long-term employee stock incentive program.

Fractional shares, if any, will be compiled into one portfolio for shareholders and will be sold at market price. The proceeds will then be distributed to eligible shareholders pro rata, within a period not exceeding 30 days from the date of determining the new shares eligible for each shareholder.

The company said the proposed capital increase and share offering are subject to the approval of the relevant authorities and the extraordinary general meeting.