Budget Saudi shareholders OK 33.74% capital hike

Budget Saudi shareholders approve amending Article 3 related to company’s objectives

United International Transportation Co.’s (Budget Saudi) shareholders approved the board recommendation to increase capital by 33.74% from SAR 781.7 million to SAR 1.04 billion, during an extraordinary general meeting (EGM) held on Feb. 19, the company said in a statement to Tadawul.

This will come through distributing 26.1 million bonus shares at one-for-three, making up 33.33% of the planned capital hike. This is besides allocating an additional 320,000 shares, representing 0.41% of post-increase capital, for the long-term employee stock incentive program.

Fractional shares, if any, will be compiled into one portfolio for shareholders and will be sold at market price. The proceeds will then be distributed to eligible shareholders pro rata, within a period not exceeding 30 days from the date of determining the new shares eligible for each shareholder.

Shareholders also approved amending Article 3 of the company’s articles of association related to the company’s objectives.

Meanwhile, they ratified establishing a long-term employee stock incentive program, authorizing the board of directors to set the terms and provisions for the program and conducting any future amendments to it, while taking all necessary procedures to implement it in accordance with laws and regulations.

In a separate statement, the Saudi Exchange (Tadawul) announced that the fluctuation limits on Feb. 23, for Budget Saudi will be based on a share price of SAR 43.52 and the outstanding orders will be canceled. Furthermore, the Securities Depository Center (Edaa) will deposit the additional shares into the investor’s portfolios by Feb. 25.