Asas Makeen EGM nods 200% capital hike via bonus issue

Logo of Asas Makeen Real Estate Development and Investment Co.

Asas Makeen Real Estate Development and Investment Co. said shareholders approved increasing capital by 200% from SAR 100 million to SAR 300 million, through the issuance of bonus shares.

The approval came during the extraordinary general meeting (EGM) held on May 21, according to a Tadawul statement.

Any fractional shares resulting from the bonus issue will be consolidated into a single portfolio for all shareholders and sold at market price. The proceeds will be distributed to eligible shareholders pro rata within 30 days maximum from the date the entitled shares are determined for each shareholder.

The company also noted that shareholders approved amendments to Article 6 and Article 7 of the company’s Articles of Association.

In addition, shareholders approved the board's recommendation to transfer the general reserve amounting to SAR 14.08 million to the retained earnings account.

In a separate statement, Tadawul announced that the stock’s fluctuation limits would be calculated based on a reference price of SAR 26.64 today, and all outstanding orders would be cancelled.

Edaa will also credit the bonus shares to shareholders’ portfolios before the start of trading on June 2.