Axelerated Solutions EGM approves 100% capital hike via bonus shares

Axelerated Solutions for Information and Communication Technology Co. said its extraordinary general meeting (EGM) approved the board’s 100% capital increase recommendation to SAR 56 million from SAR 28 million through a 1:1 bonus issue.

In a statement to Tadawul, the company said its share count will double to 56 million from 28 million shares accordingly. The planned capital hike will be funded by capitalizing SAR 28 million from retained earnings.

Any fractional shares will be aggregated into a single portfolio and sold at market price. The proceeds will be distributed to eligible shareholders pro rata based on their ownership within 30 days of determining the shares due to each shareholder, the company said.

The EGM also approved amending bylaws to include a provision governing the purchase, sale, and pledging of the company’s shares, as well as an employee share program (ESP). It also nodded to the purchase of up to one million of the company’s shares to be held as treasury shares for ESP allocation.

The company added that the treasury share purchase would be self-financed. The board was authorized to complete the purchase within 18 months of the assembly’s resolution and retain the shares for up to five years pending their allocation to eligible employees.

In a separate statement, Tadawul announced that the price fluctuation limits for Axelerated Solutions’ stock would be calculated based on a reference price of SAR 10.94 during trading today, Oct. 14, with outstanding orders canceled.

Edaa will add the bonus shares to shareholders’ portfolios before trading begins on Oct. 18.