National Building’s board amends capital hike recommendation to SAR 240 mln

Logo of National Building and Marketing Co.

National Building and Marketing Co.’s (NBM) board of directors approved today, Dec. 1, amending its recommendation to increase capital through a bonus issue, agreeing on a SAR 240 million top-up instead of the previously-suggested SAR 270 million, according to a Tadawul statement.

This came in compliance with the capital increase requirements from the annual audited financial statements. The previous board approval was obtained based on the semi-annual interim financial statements for the period ended on June 30, 2022.

Under today’s decision, NBM’s capital will be raised through the issuance of one bonus share for every one share held by shareholders, representing a 100% hike in capital based on the annual financial statements audited on Dec. 31, 2021.

This will come after obtaining the approval of competent authorities and the extraordinary general assembly on the capital increase and number of bonus shares to be issued.

It added that the eligibility to the bonus shares will be to shareholders of record at the end of trading on the date of the company's extraordinary general meeting (EGM), which will be announced later. This is besides those registered with the Securities Depository Center (Edaa) by the end of the second trading day following the EGM date.

In case there are fractional shares, they will be collected in one portfolio for all shareholders and sold at the market price. Their amount will then be distributed to eligible shareholders, on a pro-rata basis, within a period not exceeding 30 days from the date of determining the shares due to each shareholder.

Last October, NBM's board had recommended a 125% capital increase from SAR 120 million to SAR 270 million.