AI Summary
Logo of First Avenue for Real Estate Development Co.
First Avenue for Real Estate Development Co.’s board of directors recommended today, Oct. 15, increasing the company’s capital by 46.34% from SAR 205 million to SAR 300 million via bonus share issuance, according to a statement to Tadawul.
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Capital Increase details |
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Current Capital |
SAR 205 mln |
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Number of Shares |
205 mln |
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Nominal Value |
SAR 1 per share |
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New Capital |
SAR 300 mln |
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Number of New Shares |
300 mln |
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Percentage of Increase |
46.34% (granting nine bonus shares for every 20 shares owned by the company’s shareholders registered at the end of the eligibility date. In addition, 2.75 million treasury shares, representing 1.3% of the company’s current capital, will be designated to the employee stock incentive program. |
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Reason |
To strengthen the company’s capital base in line with business growth and expansion of its real estate projects. It will also reinforce the firm’s financial position, supporting future plans and strategies to enhance shareholders’ equity. |
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Method |
By capitalizing SAR 95 million from the share premium account. |
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Record Date |
Shareholders of record who are registered with Edaa on the second trading day following the record date |
Fractional shares, if any, will be compiled in one portfolio to be offered at the market price, the statement said. The proceeds will be distributed among eligible shareholders pro rata within 30 days.
The bonus issue will be subject to the approvals of the competent authorities, as well as the extraordinary general meeting (EGM), the statement added.
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