Ladun board proposes stock split from SAR 10 to SAR 1

Logo of Ladun Investment Co.

Ladun Investment Co.’s board recommended today, April 4, a stock split from SAR 10 to SAR 1, according to a statement to Tadawul.

Accordingly, the total number of shares will increase to 500 million from 50 million, the company said, noting its commitment to completing the necessary related procedures.

Ladun followed similar recommendations from several Saudi-listed companies, most notably Jarir Marketing Co. and National Environmental Recycling Co. (Tadweeer), which decided to split the nominal value of their shares from SAR 10 to SAR 1 apiece, while keeping capital unchanged.

This came as the new Companies Law recently came into force, which allowed for the stock split provided the company’s board files a proposal for the move, detailing its impact on shareholders and the percentage eligible to each of them from shares after the stock split.

Shareholders should receive this proposal at least 21 days prior to the date set for the general assembly meeting.