Al Kathiri shareholders approve 20% capital hike through bonus shares

Al Kathiri Holding Co.’s shareholders approved on Aug. 16 a 20 percent capital hike to SAR 37.67 million from SAR 31.39 million through issuance of one bonus share for every five shares held, the company said in a bourse statement on Sunday.

The process will be financed through capitalizing SAR 5.98 million from retained earnings and SAR 295,620 from the company’s statutory reserve.

Al Kathiri’s outstanding shares will be increased to 3.78 million from 3.14 million shares.

The capital increase aims to boost the company’s capital base and solvency margin, enhance growth rates and maintain future expansions.

Meanwhile, Al Kathiri’s daily trading fluctuation limit following the capital hike will be based on a share price of SAR 28.10 as of today, Aug. 26, the Saudi Stock Exchange (Tadawul) said in a statement.

The Securities Depository Center (Edaa) will deposit the additional shares into the investor’s portfolios by Aug. 28, Tadawul added.