SISCO intends to buyback up to 10% of shares to hold as treasury shares

Logo of Saudi Industrial Services Co. (SISCO)

Saudi Industrial Services Co.’s (SISCO) board of directors recommended to the extraordinary general meeting (EGM) to approve the repurchase of up to 10% of the company’s ordinary shares and retain them as treasury shares.

According to a statement on Tadawul, the purpose for the repurchase is in case the share’s market price is less than its fair value.

The company intends to repurchase 8.16 million ordinary shares, noting that it currently reserves 0.024% (19,702 shares) of its ordinary shares as treasury shares.

The repurchase transaction will be financed from the internal cash resources available to the company. SISCO noted that the share buyback is still subject to the extraordinary general meeting’s approval.

This is in addition to the fulfillment of financial solvency requirements as per the Implementing Regulations of the Companies Law.

The repurchased shares will not have voting rights in general assembly meetings.