Nayifat BOD recommends increasing capital to SR1.2 bln by granting shares

The Board of Directors of Nayifat Finance Co. has recommended to the Extraordinary General Shareholders Assembly an increase in the capital of the Company by 20%. This increase will be done through issuing bonus shares by utilization of SAR 169.7 Million of the Company’s existing retained earnings and SAR 30.3 Million from Statutory Reserves, by the issuing of 1 bonus share for every 5 shares held.
The company said in a statement today on “Tadawul” that the capital before the increase is 1,000,000,000 riyals, while the capital after the increase will be 1,200,000,000 riyals, indicating that the number of shares before the increase is 100,000,000 saha, while the number of shares after the increase will be 120,000,000 shares.
The value of the capital increase will also be financed by capitalizing the entire balance of retained earnings at an amount of (169.7) million riyals, and capitalizing part of the company’s statutory reserve balance at an amount of (30.3) million riyals.
The eligibility of the bonus shares shall be for shareholders owning shares by the end of trading day of the Company’s Extraordinary General Assembly meeting date (which will be announced later) and are registered at Securities Depository Center Company (Edaa) by the end of the second trading day following the Extraordinary General Assembly meeting date
In the case of any bonus shares having fractions these will be collected into one investment portfolio and will then be sold at market price within thirty days from the completion date of the allocation of the new shares.
Nayifat wishes to draw the attention of the shareholders to the fact that this proposed increase in capital will only be initiated once all necessary approvals are received from all the required authorities, as well as from the shareholders in the EGM.
The Non-Objection from Saudi Central Bank to increase the company’s capital as above was obtained on 29-11-2022