Al Kathiri Holding Co. Announces the Board’s Recommendation to Increase the Capital by Granting Bonus Shares

IntroductionAl Kathiri Holding Company announces the decision of the Board of Directors on Rajab 24, 1442 AH, corresponding to March 08, 2021 AD to approve the increase of the company’s capital by capitalizing part of the retained profits by granting one share for every four shares owned.
Date of Board Meeting2021-03-08 Corresponding to 1442-07-24
Capital before increase90,417,600 SR
Capital after increase113,022,000 SR
Percentage of Capital increase25 %
Number of shares before Capital increase9041760
Number of shares after Capital increase11302200
Reasons for the increaseTo support the financial position of the company and future expansions.
Number of Shares Granted per Exiting Share1 share will be granted to every shareholder who owns 4 shares.
Nature and Value of Reserves Used in the CapitalizationThe increase will be made by capitalizing (22,604,400) Saudi Riyals from the retained earnings account.
Eligibility DateEligible Shareholders are Those Holding Shares in the Eligibility Date as per the Shareholders Registry at the Deposit Center at The End of The Second Working Day after Eligibility Date
Fractional SharesIn the event that there are stock fractions, the fractions will be collected in one portfolio for all shareholders and sold at the market price, then their value will be distributed among the eligible shareholders for the grant, each according to his share within a period not exceeding 30 days from the date of determining the shares due to each shareholder.
ApprovalsThe stock dividends are conditional upon taking the approval of the official authorities and the extraordinary general assembly on increasing in the capital and the number of granted shares.