Nofoth shareholders approve capital hike via bonus issue, stock buyback

Logo of Nofoth Food Products Co.

Shareholders of Nofoth Food Products Co. approved increasing capital by 100% via a one-for-one bonus share issue.

The approval was made during the extraordinary general meeting (EGM) held on Jan. 7, according to a statement to Tadawul.

Fractional shares, if any, will be compiled in one portfolio for all shareholders and will be offered at the market price. Proceeds will be distributed among entitled shareholders pro rata within 30 days maximum.

Shareholders also approved the employees' incentives program and authorized the board to set the relevant terms, including the allocation price per share.

Further, shareholders greenlit repurchasing 2.4 million shares maximum to allocate them for the employees' incentives program. The stock buyback will be financed from the company's internal resources. The board was authorized to undertake the stock repurchase within 12 months maximum from the EGM date.

The shares will be retained for a maximum of five years from the EGM date until they are allocated to eligible shareholders. After the expiration of this period, the company will follow the measures stipulated in the relevant rules and regulations after the general meeting approves the employees' incentives program.

In a separate statement, the company said the fluctuation limits for the company's shares will be based on a price of SAR 12.50 a share, and the outstanding orders will be canceled today, Jan. 8.

Furthermore, the Securities Depository Center (Edaa) will deposit the bonus shares into shareholders' portfolios on Jan. 10.