Edarat shareholders approve 100% capital increase via bonus issue

Logo of Edarat Communication and Information Technology Co.

Edarat Communication and Information Technology Co.’s shareholders approved the board’s recommendation to increase capital by 100% to SAR 12.6 million, through capitalizing SAR 6.3 million from the retained earnings, distributing one bonus share for each existing share, according to a statement to Tadawul.  

 

This came during the extraordinary general meeting (EGM), held on May 14, the statement added.

 

Capital Increase Details

Current Capital

SAR 6.30 mln

Number of Shares

630,000

Percentage of Increase

100%

Method

1-for-1 bonus share distribution via capitalizing SAR 6.30 million from the statutory reserve and retained earnings. 

New Capital

SAR 12.60 mln

Number of Shares

1.26 mln

Reason

To boost the capital base as well as the company’s future activities and to achieve strong growth over the coming years, in line with the company’s policy.

Record Date

Shareholders registered with the Securities Depository Center Company (Edaa) by the end of the second trading day following the record date.

 

Share fractions will be compiled in one portfolio and sold at the market price. The sale proceeds will be distributed among the eligible shareholders pro rata within 30 days. 

 

Fluctuation limits will be based on a share price of SAR 240.00 on May 15, 2023, and the outstanding orders will be cancelled.  

 

The Securities Depository Center (Edaa) will add the bonus shares to the shareholder portfolios before the start of trading on May 17. 

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