Mouwasat BOD recommends capital increase to SR2 bln

Mouwasat Medical Services Company announced the recommendation of the Board of Directors to increase the capital from one billion riyals to 2 billion riyals, representing 100%, by granting one share for each share owned.

It explained that the number of shares before the increase was one billion shares, and after the increase it will become 2 billion shares, by capitalizing an amount of one billion riyals from the balance of retained earnings.

By the capital increase, Mouwasat aims to enhance its strategic growth plan in its assets, expand its medical network, and confirm its financial solvency and the strength of its financial position.

The entitlement will be to the shareholders who own the shares on the maturity date and are registered in the issuer’s shareholder register at the Depository Center at the end of the second trading day following the maturity date.

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

It is noteworthy that the grant is considered conditional on obtaining the approval of the official 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 to distribute 300 million riyals in cash dividends to shareholders for the fiscal year 2022 AD, equivalent to 30% of the nominal value of the share.

The company added that the number of shares entitled to dividends is 100 million shares at 3 riyals per share, provided that the eligibility is for shareholders who own shares on the day of the General Assembly and are registered in the company’s shareholder register at the Depository Center at the end of the second trading day following the date of the General Assembly, which will be announced. The date of its convening will be announced later after obtaining the approval of the competent authorities, and the distribution date will be announced after the General Assembly meeting convening.