eXtra recommends 19% capital hike

United Electronics Co.’s (eXtra) board of directors on June 7 has recommended a 19.05 percent capital hike to SAR 500 million from SAR 420 million.

The capital hike will be financed from retained earnings and statutory reserve for fiscal year 2017, the company said in a statement to Tadawul.

The capital increase by 14.29 percent, or six million shares, will be through the issue of one bonus share for every seven shares held.

The total of 2 million shares, representing a capital increase of 4.76 percent, will be allocated under the employee stock option program (long-term incentive plan), after obtaining regulatory and shareholder approvals, the statement said.

Shareholders registered at the Securities Depository Center (Edaa) by the end of the second day after the extraordinary general assembly meetings are eligible to receive the bonus shares, it added.