Atlas Elevators shareholders OK 50% capital hike

Logo of Atlas Elevators General Trading and Contracting Co.

Atlas Elevators General Trading and Contracting Co. said its shareholders approved a board recommendation to increase the company’s capital by 50% through a bonus-share distribution.

The approval was during the extraordinary general meeting (EGM) held on June 18, according to a Tadawul statement.

The increase will be funded by capitalizing SAR 12.7 million from the share premium account and SAR 17.3 million from retained earnings, as detailed in the following table:

Any fractional shares will be aggregated into a single portfolio for all shareholders and sold at market price, with the proceeds distributed pro rata to eligible shareholders within a period not exceeding 30 days.

Shareholders also approved the board’s proposal to extend the retention period for treasury shares by an additional 18 months. On March 3, 2024, shareholders approved the repurchase of up to 300,000 shares to be held as treasury shares for 24 months from the EGM approval date until March 2, 2026.

The repurchased shares will be retained for a further maximum period of 18 months, from the end of the original retention period until Sept. 2, 2027, in accordance with Article 24 of the Implementing Regulation of the Companies Law for Listed Joint Stock Companies.

After the expiry of this period, the company will follow the procedures and controls stipulated in the relevant laws and regulations.

Separately, Tadawul announced that the daily fluctuation limit for the company’s share was calculated based on a price of SAR 9.99 for today, June 21, and all outstanding orders canceled.

The Securities Depository Center Co. (Edaa) will deposit the bonus shares into shareholders’ portfolios before the start of trading on June 23.