Maaden board proposes 50% capital hike to SAR 36.92 bln via bonus issue

Maaden headquarters

Saudi Arabian Mining Co.'s (Maaden) board of directors recommended, on Feb. 12, increasing capital by 50%, through a one-for-two bonus share distribution, according to a filing to Tadawul.

The capital hike will be financed through capitalizing SAR 12.31 billion from the statutory reserve and retained earnings, the company noted.

Fractional shares, if any, will be collected into one investment portfolio to be then sold at market price, the company said.  

It added that the value of the sold portfolio will be proportionately distributed to the eligible shareholders within 30 days as of the date of the new share allocation.

The capital increase is subject to obtaining all necessary approvals from the competent authorities as well as the upcoming extraordinary general meeting.

In a separate statement, the board of directors recommended withholding dividends for 2022 to fulfill the company's need to finance its strategic growth plan and partnership projects.

The recommendation is pending the approval of the upcoming general meeting.