Makkah Construction shareholders to vote on capital increase on Jan. 15

Logo of Makkah Construction and Development Co.

Makkah Construction and Development Co.’s shareholders will vote on a capital increase via bonus shares funded by the statutory reserve during an extraordinary general meeting (EGM) scheduled for Jan. 15, 2025, according to a statement to Tadawul.

Fractional shares will be consolidated into a single portfolio and sold at market price. Proceeds from the sale will be distributed to eligible shareholders based on their entitlements within 30 days of finalizing the shares due, the statement added.

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Makkah Construction’s board of directors recently revised its recommendation to increase the company’s capital through bonus shares, according to Argaam’s data.

The capital increase will now be funded using the statutory reserve balance instead of retained earnings, as detailed in the table below:

The EGM agenda includes a vote on the board’s recommendation to transfer SAR 484.44 million, the remaining statutory reserve balance as of Dec. 31, 2023, to retained earnings.

This is subject to shareholder approval of the first item on increasing the company’s capital.