AME plans 100% capital hike via bonus shares

Logo of AME Company for Medical Supplies

AME Company for Medical Supplies said its board of directors has recommended a 100% capital increase, from SAR 70 million to SAR 140 million, through the issuance of bonus shares.

In a statement to Tadawul, the company said the capital increase will be funded by capitalizing SAR 70 million from retained earnings, with shareholders receiving one bonus share for each share held (1-to-1 bonus shares).

The increase aims to strengthen its capital base in line with the size of its business and future strategic plans, the statement added.

The company noted that the proposed capital increase is subject to the approval of the Capital Market Authority (CMA) and the EGM, as well as amendments to the company's bylaws.

Fractional shares, if any, will be consolidated into a single portfolio for all shareholders and sold at market price. The proceeds will then be distributed among eligible shareholders on a pro-rata basis according to their ownership, within no more than 30 days from the date on which each shareholder's entitlement is determined, the statement added.