Sumou Real Estate said, in a statement on the Saudi Stock Exchange website, Tadawul, that the Board recommended the distribution of bonus shares of one share for every two shares, and submitted its recommendation to the extraordinary general assembly to increase the company’s capital by 50%.
The company added that it was decided to increase the capital by 125 million riyals from 250 million riyals to 375 million riyals, and to increase the number of shares from 25 million shares to 37.5 million shares, by transferring part of the retained profits to the company’s capital.
She noted that the Board of Directors saw that increasing the capital by transferring part of the retained profits to capital supports the financial position of the company and meets the needs of future expansions, as it is consistent with the company’s policies.
His Highness indicated that the necessary legal procedures to increase the capital will be completed. The company had previously distributed 50 halalas in cash for each share for the profits of the first half of 2020.
The company pointed out that the entitlement of the bonus shares is to the shareholders who own the shares on the date of entitlement, and who are registered in the issuer’s shareholders register at the Depository Center at the end of the second trading day following the maturity date.
“Sumou” explained that in the event of stock fractions, the fractions will be collected in one portfolio for all shareholders, sold at the market price, and then their value will be distributed to the shareholders who are entitled to 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.
The company noted 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 awarded.