THE BOD OF RED SEA HOUSING RECOMMENDS 50% CAPITAL RAISE

The Board of Directors of Red Sea Housing Services Company has convened a meeting on Monday 20-01-2014 corresponding to 19-03-1435 to review the strategy of the Company and discuss its future expansion plans.
Accordingly, the Board has recommended increasing the share capital of company from SAR 400 million to SAR 600 million through the distribution of 1 bonus share for every 2 shares owned (1 to 2). Once approved, the total number of issued shares will increase from 40 million to 60 million shares, an increase of 50%. The capital increase will be financed from Retained Earnings through the transfer of SAR 200 million.
This decision strives to support the capital base of the company and complements the objectives of the adopted Growth Strategy, which aim to increase the current activities of the company and enter into new international markets; invest in the construction materials sector; and enter into the Affordable Housing Sector.
Entitlement for the bonus shares will be for registered shareholders on the date of the EGM, which will be announced in due course. Should there be share fractions as a result of increasing the share capital, these will be gathered in a designated portfolio and will then be sold in the market within the specified regulatory period following the allocation date.
The Company shall obtain the required approvals for the increase of share capital and the number of bonus shares from the relevant authorities and the Extraordinary Assembly General (EGM).