Al-Modawat Recommends 200% Capital Increase Through Bonus Shares

Al-Modawat Specialized Medical Co. announced on Monday that its Board of Directors has recommended a capital increase by issuing bonus shares, through the capitalization of SAR 47.5 million from the share premium balance. The increase will be executed by granting two bonus shares for every one share held by shareholders.

The company stated on Tadawul that its capital will rise from SAR 23.7 million to SAR 71.25 million, representing a 200% increase.

Al-Modawat explained that the capital increase aims to support its strategic growth plans, meet future expansion needs and aspirations, and reinforce its financial solvency and strong financial position. Eligibility for the bonus shares will be limited to shareholders owning shares on the due date and registered in the company’s shareholder registry at the Securities Depository Center by the end of the second trading day following the due date.

The company added that in the event of fractional shares, all fractions will be collected into a single portfolio, sold at market price, and the proceeds distributed to eligible shareholders according to their respective entitlements within 30 days of determining the eligible shares for each shareholder.