Advanced shareholders approve 20.1% capital increase via bonus issue

One of Advanced Petrochemical's manufacturing plants

Shareholders of Advanced Petrochemical Co. approved the board of directors’ recommendation to increase capital to SAR 2.60 billion from SAR 2.16 billion through a 20.1% bonus issue, during the extraordinary general meeting (EGM) held on March 20, the company said in a statement to Tadawul.

The capital will be increased by issuing one bonus share for every five existing shares.

Fractional shares will be grouped in one portfolio to be sold at the market price, while proceeds will be distributed among eligible shareholders pro rata within 30 days.

Shareholders also ratified a stock buyback at a maximum of 1.5 million shares, to allocate them for the employee incentive shares program. The stock buyback will be financed through the company’s own resources.

The board of directors will be delegated to complete the share purchase within 12 months from the EGM date and shares will be retained for 10 years maximum from the date of approval until they are allocated to eligible employees.

At the end of mentioned period, the company will follow the rules and procedures stipulated in the relevant laws and regulations.

Shareholders also approved the dividends paid for Q1, Q2, Q3, and Q4 2021, at SAR 2.6 a share, or 26% of capital, totaling SAR 562.8 million.

Shareholders authorized the board to pay interim cash dividend on seminnual or quarterly basis for 2022.

Meanwhile, the Saudi Exchange (Tadawul) announced on March 21 that the fluctuation limits for Advanced will be based on a share price of SAR 68.90 and the outstanding orders will be canceled. Additionally, Edaa will deposit the bonus shares into investor portfolios by March 23.