East Pipes Integrated Company for Industry announces the Board of Directors’ recommendation to grant bonus shares by way of capitalizing part of its retained earnings

2022-08-08 15:36:45

Element ListExplanation
Introduction East Pipes Integrated Company for Industry is pleased to announce to shareholders that the Board of Directors recommends to the Extraordinary General Assembly Meeting (EGM) to grant bonus shares to its shareholders via capitalizing SAR 105,000,000 from retained earnings.
Date of Board Meeting 2022-08-08 Corresponding to 1444-01-10
Capital before increase SAR 210,000,000
Capital after increase SAR 315,000,000
Percentage of Capital increase 50 %
Number of shares before Capital increase 21000000
Number of shares after Capital increase 31500000
Reasons for the increase The objective of the proposed bonus shares is to provide sustainable returns to shareholders, whilst supporting the Company’s strategic investment plans.
Number of Shares Granted per Exiting Share 0.5 shares for every 1 share held
Nature and Value of Reserves Used in the Capitalization Through the capitalization of SAR 105,000,000 from retained earnings.
Eligibility Date The eligibility of the bonus shares shall be for shareholders who own the shares by the end of trading day of the Company’s Extraordinary General Assembly meeting date (which will be announced later) and are registered in the Company’s shareholders record at the Securities Depository Center (Edaa) at the end of the second trading day following the Extraordinary General Assembly meeting date.
Fractional Shares In case of occurrence of fractions of bonus shares, the Company will collect all fractions in one portfolio for all shareholders to be sold at market price, then the amount will be distributed among the eligible shareholders proportionately as per their ownership percentage within a period not exceeding 30 days from the date of determining the due shares for each shareholder.
Approvals The Company also wishes to draw the attention of the shareholders that the proposed bonus shares are subject to obtaining the necessary approvals from the relevant authorities, as well as from the shareholders in the EGM.
Attached Documents