East Pipes gets CMA approval to increase capital by 50% via bonus issue

Logo of  East Pipes Integrated Co.

East Pipes Integrated Co. obtained the approval of the Capital Market Authority (CMA) to increase its capital from SAR 210 million to SAR 315 million, through a one-for-two bonus share distribution.

Shareholders registered with the Security Depository Center (Edaa) at the end of the second trading day following the record date – to be determined later by the company's board – will be eligible for the bonus share distribution.

The capital increase will be paid by transferring SAR 105 million from retained earnings. Consequently, the number of shares will be increased from 21 million to 31.5 million.

The extraordinary general meeting (EGM) will be held within six months from the CMA’s approval date, and the company will fulfill all regulatory requirements and applicable laws.

The company’s board of directors recommended today, Aug. 8, increasing the company’s capital by 50%, through distributing 0.5 bonus share for every one share held, according to according to data available with Argaam.