WSM shareholders OK 10% capital hike for employee shares program

Logo of WSM for Information Technology Co.

WSM for Information Technology Co.’s shareholders approved, in a meeting held on April 17, a board of directors recommendation of a 10% capital increase, according to a statement to Tadawul.

This increase will be financed from the company’s retained earnings and allocated to the employee shares program, the statement added.

The capital increase will be allocated to the employee stock ownership plan (ESOP) to enhance employee loyalty. This program also aims to attract top talents and achieve solid growth rates in line with the company's expansion strategy.

For more news on listed companies

The number of shareholders' shares will not be affected by the capital increase, but shareholders' ownership percentage in the company's shares will decrease by 9.09% due to new shares.

Meanwhile, shareholders approved the board recommendation to transfer the balance of the company's statutory reserve, which amounted to SAR 1.49 million in financial statements for six months ending June 30, 2024, to the retained earnings balance.

In a separate statement, the Saudi Exchange (Tadawul) announced that the fluctuation limits, on April 20, for WSM will be based on a share price of SAR 39.05 and the outstanding orders will be canceled.