East Pipes shareholders approve 50% capital hike via bonus issue

Logo of East Pipes Integrated Company for Industry

East Pipes Integrated Company for Industry’s shareholders approved the board’s recommendation to increase capital by 50% from SAR 210 million to SAR 315 million, during the extraordinary general meeting (EGM), held on Oct. 19.

This will come through a 1-for-2 bonus issue, and the capitalization of SAR 105 million of the retained earnings, according to a statement to Tadawul.

Share fractions, if any, will be sold at market price, and the proceeds will be distributed to eligible shareholders pro rata within 30 days from the allocation of new shares.

Fluctuation limits will be based on a share price of SAR 48.25 and the outstanding orders will be canceled. Furthermore, the Securities Depository Center (Edaa) will deposit the addition shares into the investor’s portfolios by Oct. 24, the Saudi Exchange (Tadawul) said in a separate statement.