Logo of Arabian Pipes Co.
Arabian Pipes Co.'s board of directors cancelled today, Nov. 9, its earlier recommendation to increase capital through a rights issue.
In a statement to Tadawul, Arabian Pipes pointed out that the proposal was canceled on improvement in the company's balance sheet and availability of financing sources.
There are no costs or changes related to this decision, the statement noted.
In a separate statement, the company announced that its board recommended, on Nov. 8, to increase its capital by 50% to SAR 150 million through capitalizing part of the retained earnings via a 1-for-2 bonus issue.
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Capital Increase Details |
|
|
Current Capital |
SAR 100 mln |
|
Number of Shares |
10 mln |
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Percentage of Capital |
50% (1 bonus share for every 2 shares) |
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New Capital |
SAR 150 mln |
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Number of Shares |
15 mln |
|
Method |
Capitalization of SAR 50 million from the retained earnings |
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Reason |
Supporting the company's financial position and future growth plans |
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Record Date
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Shareholders registered with Edaa on the second trading day after the EGM |
Fractional shares, if any, will be sold at market price. The proceeds will be distributed to eligible shareholders pro rata within 30 days from the allocation of new shares.
The bonus issue is subject to obtaining the relevant approvals from the official competent authorities and shareholders.
On July 17, 2022, the board of directors recommended raising capital through a SAR 150 million rights offering, Argaam earlier reported.
The pipe manufacturer swung to a net profit of SAR 91.4 million in the first nine months of 2023, against a net loss of SAR 7.5 million in the year-earlier period. In Q3 2023, net profit skyrocketed to SAR 44.8 million.
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