Sumou shareholders OK 1:3 bonus issue, transfer of statutory reserve to retained earnings

Logo of Sumou Real Estate Co.

Shareholders of Sumou Real Estate Co. greenlit the board of directors’ recommendation to raise the company’s capital by 33.3% through a one-for-three bonus share distribution by capitalizing SAR 125 million from retained earnings.

The approval was granted during the ordinary general meeting (OGM) held on June 6, the company said in a statement to Tadawul.

Fractional shares, if any, will be compiled in one portfolio for shareholders and will be sold at market price. The proceeds will be distributed to the eligible shareholders on a pro rata basis in 30 days.

Shareholders also approved transferring the SAR 54.54 million statutory reserve as of Dec. 31, 2023, to the retained earnings account.

The board was also authorized to pay interim dividends on a semi-annual or quarterly basis for 2024.

The Saudi Exchange (Tadawul) said Sumou’s fluctuation limit will be based on a share price of SAR 39.10 as of today, June 9. Outstanding orders will be canceled.

The Securities Depository Center (Edaa) will deposit the bonus shares into investor portfolios by June 11.