Bahri plans dividend freeze for H2 2021, capital increase to SAR 4.9 bln through bonus shares

A carrier of Bahri

The board of directors of National Shipping Company of Saudi Arabia (Bahri) recommended, on Feb. 6, to increase capital by 25%, from SAR 3.94 billion to SAR 4.92 billion, through one share for every four shares held.

In a bourse statement, the company added that the capital hike is pending the approval of competent authorities and the upcoming extraordinary general meeting (EGM).

Shareholders of record on the EGM date, whose will be determined later, and those registered with the Securities Depository Center Co. (Edaa) are eligible for the capital hike.

In case of fractional bonus shares, the company will collect them in one portfolio to be sold at the market price. The sale proceeds will be distributed to eligible shareholders on a pro rata basis within 30 days from the allocation of new shares to each shareholder.

In a separate statement, Bahri added that the board recommended to withhold dividends for the second half of 2021.

The recommendation is attributed to the impact of high volatility of global shipping freight on the company’s 2021 financial results. The firm also seeks to maintain positive cash flow and strengthen its financial position to support the future expansions.

The recommendation also goes in line with the dividend policy, which was approved by the general meeting on April 26, 2021.

Bahri already distributed cash dividend at SAR 1 per share for H1 2021.

This recommendation is pending the approval of the upcoming general meeting, whose date will be determined later.