Advanced shareholders approve 20.1% capital increase via bonus issue

21/03/2022 Argaam
One of AdvancedPetrochemical's manufacturingplants

One of Advanced Petrochemical's manufacturing plants


Shareholders of Advanced Petrochemical Co. approved the board of directors’ recommendation to increase capital to SAR 2.60 billion from SAR 2.16 billion through a 20.1% bonus issue, during the extraordinary general meeting (EGM) held on March 20, the company said in a statement to Tadawul.

 

The capital will be increased by issuing one bonus share for every five existing shares.

 

Capital Increase Details – Bonus Issue

Current Capital

SAR 2.164 bln

Number of Shares

216.5 mln

Percentage of Increase

20.1% (One bonus share for every five existing shares)

New Capital

SAR 2.6 bln

Number of Shares

260 mln

Reason

To boost the company's capital base in line with assets and future expansions

Method

To capitalize SAR 261.16 million from the statutory reserve and SAR 174.10 million from the retained earnings

Record Date

March 20, 2022 (Shareholders of record with the Securities Depository Center Company (Edaa) at the end of the second trading day

 

Fractional shares will be grouped in one portfolio to be sold at the market price, while proceeds will be distributed among eligible shareholders pro rata within 30 days.

 

Shareholders also ratified a stock buyback at a maximum of 1.5 million shares, to allocate them for the employee incentive shares program. The stock buyback will be financed through the company’s own resources.

 

The board of directors will be delegated to complete the share purchase within 12 months from the EGM date and shares will be retained for 10 years maximum from the date of approval until they are allocated to eligible employees.

 

At the end of mentioned period, the company will follow the rules and procedures stipulated in the relevant laws and regulations.

 

Shareholders also approved the dividends paid for Q1, Q2, Q3, and Q4 2021, at SAR 2.6 a share, or 26% of capital, totaling SAR 562.8 million.

 

Shareholders authorized the board to pay interim cash dividend on seminnual or quarterly basis for 2022.

 

Meanwhile, the Saudi Exchange (Tadawul) announced on March 21 that the fluctuation limits for Advanced will be based on a share price of SAR 68.90 and the outstanding orders will be canceled. Additionally, Edaa will deposit the bonus shares into investor portfolios by March 23.

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