Rasan EGM OKs capital hike, allots 1.71M shares to employee stock program

Logo of Rasan Information Technology Co.

Rasan Information Technology Co.'s shareholders approved increasing the company's capital from SAR 75.8 million to SAR 77.51 million by capitalizing part of the retained earnings, in an extraordinary general meeting (EGM) held on Feb. 6.

The increase will be achieved through the issuance of 1.71 million ordinary shares to be allocated for the employee stock program (long-term incentive plan), according to a statement to Tadawul.

The number of shares for shareholders will not be impacted following the capital increase. The ownership percentage will be negatively impacted by 2.25% due to the issuance of the new shares, the statement added.

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Meanwhile, shareholders approved the long-term incentive plan for employees, which can be extended by three to five years. It will be funded with a maximum of 1.7 million shares.

Shareholders also authorized the board of directors to manage the plan and link its mechanism with the performance, and make the required amendments when necessary.

Meanwhile, Tadawul announced the fluctuation limit for Rasan’s stock will be calculated based on a price of SAR 89.30 today, Feb. 9. All outstanding orders will be canceled.

According to data compiled by Argaam, Rasan announced in October 2024 its board of directors recommendation to increase the company's capital from SAR 75.8 million to SAR 77.51 million by capitalizing part of the retained earnings.