Theeb Rent-a-Car’s BOD Recommends Capital Increase to SAR 659.7 Million Through Bonus Shares

Theeb Rent-a-Car announced the issuance of a resolution by the Board of Directors recommending to the Extraordinary General Assembly a 53.4% capital increase. This is to support the company’s growth, achieve its strategic objectives, and strengthen its financial position, as follows:

1. Issuing 21.5 million shares as bonus shares to shareholders, at a rate of one share for every (2) existing shares, representing 50% of the capital increase.
2. Allocating an additional 1.47 million shares, representing 3.4% of the capital increase, to be allocated to the long-term employee incentive stock program.

The company stated in a statement today on Tadawul that the capital before the increase was SAR 430 million, and will increase to SAR 659.7 million, representing a 53.4% increase. She added that the right to the dividend will be granted to shareholders who own shares on the due date and are registered in the issuer’s shareholder register at the Depository Center at the end of the second trading day following the due date. She explained that if there are fractional shares, the fractional shares will be combined into a single portfolio for all shareholders and sold at the market price. Their value will then be distributed to shareholders on the due date, each according to their shareholding, within a period not exceeding thirty days from the date on which the shares due to each shareholder are determined.

Approvals: The increase in capital and the number of shares granted are subject to the approval of official authorities and the extraordinary general assembly.