Budget Saudi recommends 17% capital hike through bonus shares
United International Transportation Company’s (Budget Saudi) board of directors recommended on Thursday a 16.7 percent capital hike to SAR 711.67 million from SAR 610 million through the issue of one bonus share for every six shares held.
Budget will capitalize SAR 101.67 million of retained earnings in order to facilitate the capital hike, the company said in a statement on Tadawul.
The move aims to boost the company’s financial position, support future expansions, and help in implementing its plan started in 2012.
Shareholders registered on the company’s registry at the end of the extraordinary assembly meeting approving the capital hike will be eligible.
Fractional shares will be accumulated in one portfolio and will be sold at market price within 30 days after allotting new shares.
The process is conditional upon obtaining regulatory approvals, the company added.
|
Capital Hike Details |
|
|
Current capital |
SAR 610 million |
|
Current No. of shares |
61 million |
|
Percentage of Increase |
16.66 percent (1-for-6 bonus shares) |
|
Post-increase capital |
SAR 711.67 million |
|
Post-increase shares |
71.17 million |
|
Eligibility Date |
The general assembly meeting date- determined later |
