Riyadh Steel shareholders approve 40% capital hike via bonus issue

Logo of Riyadh Steel Co.

Shareholders of Riyadh Steel Co. approved the board's recommendation to increase capital by 40% via a four-for-10 bonus issue through capitalizing SAR 20 million from the retained earnings.

The decision came during the extraordinary general meeting (EGM) held on June 30, according to a statement to Tadawul.

The fractional shares, if any, will be compiled in one portfolio, to be offered for sale at market price. The proceeds will be distributed among the eligible shareholders pro rata within 30 days.

The EGM agreed to transfer the company's statutory reserve balance, amounting to SAR 5.65 million, as of Dec. 31, 2023, to the retained earnings balance.

Shareholders also approved authorizing the board to pay interim dividends on a quarterly or semi-annual basis for 2024.

In addition, they ratified amending Article 3 of the company’s bylaws related to its purposes.

Meanwhile, the Saudi Exchange (Tadawul) announced that fluctuation limits will be based on a share price of SAR 25.05 as of today, July 1 and the outstanding orders will be canceled.

Edaa will deposit the bonus shares into investor portfolios before the start of trading on July 3.