Nayifat’s board recommends 20% capital increase via bonus issue

Logo of Nayifat Finance Co.

Nayifat Finance Co.’s (NFC) board of directors recommended  increasing the company’s capital by 20% to SAR 1.2 billion via a 1-for-5 bonus-share distribution, according to a statement to Tadawul.

 

The increase will be financed by capitalizing all retained earnings of SAR 169.7 million and SAR 30.3 million from statuary reserve, as shown below:

 

Details of Capital Increase

Current capital

SAR 1 bln

Number of shares

100 mln

Percentage of increase

20%

Method

Distributing 1 share for every 5 shares held through capitalizing SAR 167.7 mln from retained earnings and SAR 30.3 million from statuary reserves.

New capital

SAR 1.2 bln

Number of shares

120 mln

Reason

To bolster the company's capital base and future activities, to record high growth rates over the coming years.

Record date

For shareholders owning shares, by the end of trading day of the extraordinary general meeting date (which will be announced later). For shareholders registered with Edaa, by the end of second trading day after the record date.

 

The company pointed out that the capital increase is subject to obtaining all necessary approvals from the competent authorities as well as the shareholders.

 

Fraction shares, if any, will be collected into one investment portfolio to be then sold at market price.

 

The value of the sold portfolio will be proportionately distributed to the eligible shareholders within 30 days as of the date of the new shares allocation, the statement added.

 

The company received non-objection from Saudi Central Bank (SAMA) on the capital hike on Nov. 29.

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