SASCO board to raise capital via statutory reserve

Logo of Saudi Automotive Services Co. (SASCO)

Saudi Automotive Services Co.’s (SASCO) board of directors cancelled its previous recommendation to transfer the entire balance of the statutory reserve, totaling SAR 83.1 million, into retained earnings for the purpose of a capital increase.

Instead, the board recommended using the statutory reserve, in addition to SAR 16.9 million from the retained earnings, to raise the capital, instead of fully capitalizing the SAR 100 million from retained earnings, the company said two separate statements to Tadawul, noting that this would have no impact on the financials.

According to data available on Argaam, SASCO's board of directors recommended, in its meeting held last month, to convert the entire statutory reserve, amounting to SAR 83.1 million, into retained earnings and increase the company's capital by 16.67% through the issuance of bonus shares to shareholders by capitalizing the full amount of SAR 100 million from retained earnings.