SACO board proposes 50% capital hike through bonus shares

Saudi Company for Hardware’s (SACO) board of directors proposed on Tuesday raising the company’s capital by 50 percent to SAR 360 million, from SAR 240 million, through the issue of one bonus shares for every two shares held.

The number of shares will be increased to 36 million, SACO said in a statement to Tadawul.

The company will recapitalize SAR 62.3 million from its retained earnings and SAR 57.7 million from statutory reserves to fund the capital increase.

Fractional shares will be accumulated in one portfolio and will be sold at market price within 30 days from the allotment process.

The capital hike is subject to the approval of the regulatory authorities and the extraordinary general assembly meeting, the statement added.