QOMEL BOD Recommends Capital Increase to SAR 70 Million via Bonus Shares

QOMEL announced on Wednesday its Board of Directors’ decision to approve a 100% capital increase by granting free shares through capitalising an amount of SAR 32.6 million from the issuance premium balance and an amount of SAR 2.4 million from the retained earnings balance, by granting (1) free share for every (1) share owned by shareholders.

The Company said in a statement today on “Tadawul” that the capital before the increase was SAR 35 million, while after the increase it will be SAR 70 million.

The Company explained that the aim of increasing the capital is to enhance the strategic growth plan, meet future expansion needs and aspirations, and emphasize its financial stability and strength.

The Eligibility will be for Shareholders who hold Shares in the Eligibility Date and are registered in the Shareholders Registry at the Depository Centre at the end of the Second Working Day following the Eligibility Date.

The Company added that in the event of fractional shares granted, the fractions will be collected in one portfolio for all shareholders and sold at the market price. Then, their value will be distributed to shareholders entitled to the grant, each according to his share within a period not exceeding 30 days from the date of determining the new shares entitlement of each shareholder.

The grant is conditional on obtaining the approval of the competent authorities and the approval of the Extraordinary General Assembly to increase the capital and the number of shares granted.