United International BOD recommends increasing its capital to SAR 750 million through share grants

The Board of Directors of United International Holding Company has decided to recommend to the Extraordinary General Assembly a 200% capital increase to support the financial position. The Board of Directors stated that the capital will increase from SAR 250 million to SAR 750 million, and the number of shares will increase from 25 million to 75 million. The details of the increase are as follows:

1. Distributing 47 million shares as bonus shares to shareholders, at a rate of 1.88 shares for every share owned by the shareholder, which is equivalent to 47 shares for every 25 shares owned by the shareholder, representing a 188% increase in the company’s capital. This is subject to obtaining the approval of the competent authorities and the Extraordinary General Assembly for the increase in capital and the number of bonus shares. The eligibility will be for shareholders who own shares on the due date, at the end of trading on the day of the company’s Extraordinary General Assembly (the date of which will be announced later), and who are registered in the company’s shareholder register with the Securities Depository Center Company (the Depository Center) at the end of the second trading day following the date of the company’s Extraordinary General Assembly. In the event of fractional shares, these fractional shares will be collected in a single portfolio for all shareholders and sold at the market price. Their value will then be distributed to the shareholders entitled to the bonus, each according to his or her shareholding, within a period not exceeding 30 days from the date of determining the shares due to each shareholder.
2. Three million shares have been allocated to establish the company’s employee stock program (long-term incentive plan), subject to obtaining the approval of the competent authorities, where applicable, and the extraordinary general assembly, the date of which will be announced later.

The company stated in a statement today on Tadawul that the capital increase will be financed by capitalizing SAR 500 million from the statutory reserve account, the additional capital contribution account, and the retained earnings account.

The company indicated that the entitlement will be granted to shareholders who own shares on the due date, at the end of trading on the day of the company’s extraordinary general assembly (the date of which will be announced later), and who are registered in the company’s shareholder registry with the Securities Depository Center Company (the Depository Center) at the end of the second trading day following the date of the company’s extraordinary general assembly, which will be announced later. She continued: “In the event of fractional shares, the fractional shares will be collected in a single portfolio for all shareholders and sold at market price. Their value will then 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 shares due to each shareholder.”