Al Ashghal Al Moysra EGM OKs 100% capital hike via bonus shares

Al Ashghal Al Moysra plans one-for-one bonus share distribution to increase capital

Shareholders of Al Ashghal Al Moysra Co. approved the board’s proposal for raising the company’s capital by 100% through a one-for-one bonus share distribution, during the extraordinary general meeting (EGM) held on Sept. 24.

The company will capitalize SAR 24 million from the retained earnings balance to fund the increase, according to a statement to Tadawul.

The company said any fractional shares will be compiled into a single portfolio for all shareholders and sold at market price.

The proceeds will be distributed to eligible shareholders pro rata within a period not exceeding 30 days from determining the new shares eligible for each shareholder.

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Shareholders also ratified transferring the statutory reserve balance of SAR 15,000 as of Dec. 31, 2024, to the retained earnings account.

They further approved amending Article 4 of the company’s bylaws related to the corporate objectives.

Moreover, shareholders approved the transactions and contracts that the company will conclude, in which the Chairman, Deputy Chairman and a board member have direct interests.

The one-year contracts (commercial transactions – to supply the company with manpower as needed) were approved during the ordinary general meeting held on June 25, 2024, and were valued at SAR 1.06 million. The amount paid during 2024 totaled SAR 873,200, while the balance at the end of the period stood at SAR 414,500.

These transactions will be conducted in the ordinary course of business, in line with prevailing commercial terms, and without any preferential conditions.

In a separate statement, the Saudi Exchange (Tadawul) said that the fluctuation limits, on Sept. 25, for Al Ashghal Al Moysra will be based on a share price of SAR 26.16 and the outstanding orders will be canceled. Furthermore, the Securities Depository Center (Edaa) will deposit the addition shares into investor portfolios by Sept. 29.