Obeikan Glass proposes bonus issue to raise capital by 33%

Obeikan Glass manufacturing facility

The board of directors of Obeikan Glass Co. recommended on Sept. 11 a 33.3% capital increase to SAR 320 million, through a one-for-three bonus share distribution, the company said in a statement to Tadawul. 

Fractional 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 distributed to eligible shareholders pro rata within 30 days as of the date of the new shares allocation.

The bonus share distribution is subject to obtaining all necessary approvals from the competent authorities as well as the company’s shareholders, the statement added.

According to data available with Argaam, the company’s shareholders disapproved the board of directors’ previous proposal to increase capital by 33.3% to SAR 320 million via capitalization of retained earnings and a 1-for-3 bonus issue, during the EMG held on May 18.

Shareholders also rejected to approve amending Article No. 7 of the company’s bylaws related to the company’s capital, and Article No. 8 related to share subscription.