Arabian Pipes votes July 27 on 26% capital hike via bonus issue

The increase includes 1-for-4 bonus share issue, and allocation of 2 mln shares as treasury shares for ESIP

Arabian Pipes Co. said its shareholders will vote on the board’s proposal to increase capital during the extraordinary general meeting (EGM) scheduled for July 27, according to a Tadawul statement.

Shareholders will vote on increasing capital by 26%, from SAR 200 million to SAR 252 million.

The increase will be financed by capitalizing SAR 52 million from retained earnings through the issuance of 50 million bonus shares, equivalent to 25% of the company's capital before the increase, through granting one bonus share for every four shares held.

The company added that two million of the newly issued shares will be allocated as treasury shares for its long-term Employee Stock Incentive Program (ESIP), representing 1% of the company's capital before the increase.

Shareholders will also vote on amendments to Articles 7 and 8 of the company's bylaws, relating to the capital and share subscription, respectively.

They will also vote on the ESIP and authorize the board of directors to determine the plan's terms, including the allocation price of shares offered to employees.