Naseej Tech board proposes 54.5% capital hike through bonus issue

Naseej for Technology Co. to implement 54.5% capital increase and allocate some of the new shares as treasury shares for ESIP

Naseej for Technology Co.’s board of directors recommended, on Nov. 4, a 54.5% capital increase from SAR 50 million to SAR 77.25 million via a bonus share distribution. The company will allocate 225,000 new shares as treasury shares for the employee incentive stock plan (ESIP) under the long-term incentive plan, according to a statement to Tadawul.

In the event that there are stock fractions, the fractions will be collected in one portfolio for all shareholders and sold at the market price, then their value will be distributed among the eligible shareholders, on a pro rata basis, within a period not exceeding 30 days from the date of determining the shares due to each shareholder, according to the company's statement.

The proposed distribution remains subject to obtaining the approval of the competent regulatory authorities and the company's extraordinary general assembly (EGM).