‎“Electrical Industries” BOD recommends capital increase to ‎SR562.5 mln by granting bonus shares

Electrical Industries Co. announced the recommendation of the Board of Directors to the general public to increase the capital from 450 million to 562.5 million, equivalent to 25% of the capital, by granting bonus shares to its shareholders, by granting one share for every four shares.

The company said that the number of shares before the increase was 45 million shares, to become after the increase 56.2 million shares, explaining that the reasons for the increase are to strengthen and support the financial position and achieve its business growth strategy.

According to the statement published on “Tadawul”, the capital increase will take place by capitalizing an amount of 112,500,000 riyals from the retained earnings.

The eligibility for the bonus shares will be for the shareholders who own the company’s shares at the end of trading on the day of the extraordinary general assembly and who are registered in the company’s shareholder register with the Securities Depository Center Company at the end of the second trading day following the date of the extraordinary general assembly, whose date will be determined later.

In the event that there are fractional shares, the fractions will be collected in one portfolio for all the shareholders and sold at the market price, then its value will be distributed among the eligible shareholders, each according to his share, within a period not exceeding 30 days from the date of determining the shares due to each shareholder.

The grant is conditional on the approval of the competent authorities and the extraordinary general assembly on the increase in the capital and the number of shares granted.

The company also announced the recommendation of the Board of Directors not to distribute cash dividends to shareholders for the year 2022 AD, in order to support and strengthen the financial position to achieve the company’s business growth strategy.

The Board of Directors’ recommendation not to distribute dividends to shareholders for the fiscal year 2022 AD will be presented to the next General Assembly, in order to vote on it.