First Avenue EGM OKs 46.34% capital hike via bonus issue

First Avenue’s EGM approved the purchase up to 3 million of its own shares to be retained as treasury shares

First Avenue for Real Estate Development Co. shareholders, in an extraordinary general meeting (EGM) held on June 15, approved a board recommendation to increase the company’s capital by 46.34% from SAR 205 million to SAR 300 million via bonus share issuance, according to a statement to Tadawul. 

Fractional shares, if any, will be compiled in one portfolio to be offered at the market price, the statement said. The proceeds will be distributed among eligible shareholders pro rata within 30 days.

Shareholders also approved all agenda items, including authorizing the company to purchase up to 3 million of its own shares to be retained as treasury shares for a maximum period of five years, to be used in share-swap transactions for the acquisition of shares or stakes in other companies or the purchase of assets. Shareholders authorized the board to complete the buyback within a period not exceeding 12 months.

Meanwhile, they approved authorizing the board of directors to distribute interim dividends for fiscal year 2026 on a semi-annual or quarterly basis for 2026.

In a separate statement, the Saudi Exchange (Tadawul) announced that the fluctuation limits on June 16 for First Avenue will be based on a share price of SAR 4.73 and the outstanding orders will be canceled.

The Securities Depository Center (Edaa) will deposit the addition shares into the investor’s portfolios by June 18, 2026.