Logo of Riyadh Steel Co.
Shareholders of Riyadh Steel Co. approved the board's recommendation to increase capital by 40% via a four-for-10 bonus issue through capitalizing SAR 20 million from the retained earnings.
The decision came during the extraordinary general meeting (EGM) held on June 30, according to a statement to Tadawul.
|
Capital Increase Details |
|
|
Current Capital |
SAR 50 mln |
|
Number of Shares |
5 mln |
|
Increase Percentage |
40% |
|
Method |
Four bonus shares for every 10 shares held by capitalizing SAR 20 mln from retained earnings |
|
New Capital |
SAR 70 mln |
|
New Number of Shares |
7 mln |
|
Reason |
To boost the financial position and support future growth plans |
|
Record Date |
June 30, 2024 (Shareholders of record who are registered with Edaa at the end of the second trading day following the record date) |
The fractional shares, if any, will be compiled in one portfolio, to be offered for sale at market price. The proceeds will be distributed among the eligible shareholders pro rata within 30 days.
The EGM agreed to transfer the company's statutory reserve balance, amounting to SAR 5.65 million, as of Dec. 31, 2023, to the retained earnings balance.
Shareholders also approved authorizing the board to pay interim dividends on a quarterly or semi-annual basis for 2024.
In addition, they ratified amending Article 3 of the company’s bylaws related to its purposes.
Meanwhile, the Saudi Exchange (Tadawul) announced that fluctuation limits will be based on a share price of SAR 25.05 as of today, July 1 and the outstanding orders will be canceled.
Edaa will deposit the bonus shares into investor portfolios before the start of trading on July 3.
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