Edraat Communications and Information Technology Company “Edraat” announced the decision of the Board of Directors to raise a recommendation to the extraordinary general assembly of the company to increase the capital by capitalizing part of the statutory reserve and retained earnings, by granting one share for each share.
The company said in a statement on “Tadawul Saudi Arabia”, today, Monday, that it was decided to increase the capital from 6.3 million riyals to 12.6 million riyals, an increase of 100%.
She explained that the number of shares will increase from 630 thousand shares to 1.26 million shares after the increase.
The company added that it aims to raise the capital to support and strengthen the capital base and future activities of the company, which contributes to achieving good growth rates during the coming years.
And she continued, “Only 6.3 million riyals will be capitalized from the statutory reserve and retained earnings.”
It indicated that the eligibility will be for the shareholders who own shares on the due date and are registered in the issuer’s shareholder register at the Depository Center at the end of the second trading day following the due date.
She said that in the event of share fractions, the fractions will be collected in one portfolio for all shareholders and sold at the market price, then its value will be distributed to the shareholders eligible for the grant, each according to his share within a period not exceeding 30 days from the date of determining the new shares due to each shareholder.
She added that the grant is conditional on obtaining the approval of the official authorities and the extraordinary general assembly on the increase in the capital and the number of shares granted.