Saudi Aramco’s shareholders approve 1:10 bonus issue

Logo of Saudi Aramco

Saudi Arabian Oil Co.’s (Saudi Aramco) extraordinary general assembly approved on May 12 the board recommendation to increase the company’s capital from SAR 60 billion to SAR 75 billion by capitalizing SAR 15 billion from retained earnings through granting one share for every 10 shares, according to a bourse filing.

* No nominal value for Aramco’s shares.

In a separate statement, the Saudi Exchange (Tadawul) announced that the fluctuation limits for Aramco, on May 15, will be based on a share price of SAR 40.65 and the outstanding orders will be canceled.

Additionally, Edaa will deposit the bonus shares into investor portfolios by May 17.

In case of bonus shares fractions, Saudi Aramco collect all fractions in one portfolio for all shareholders to be sold at market price. The amount will be distributed proportionately among the eligible shareholders, within a period not exceeding 30 days from the date of determining the due shares for each shareholder.

Shareholders by the end of trading on the day of the extraordinary general assembly meeting (EGM) are eligible, along with those registered with the Securities Depository Center (Edaa) at the end of the second trading day following the EGM.

Meanwhile, shareholders approved amending Article (6) of the company’s bylaws relating to the capital.