Riyadh – Mubasher: The Capital Market Authority (CMA) approved the requests of United Electronics Company (eXtra) and East Pipes Integrated Company for Industry to increase their capital through bonus shares.
eXtra will raise its capital by granting seven bonus shares for every 25 owned shares at a total volume of 20 million bonus shares, according to a recent bourse disclosure.
The new capital will stand at SAR 800 million distributed over 80 million shares, compared to SAR 600 million and 60 million shares prior to the hike.
The electronics firm will transfer SAR 140 million from the retained earnings account and SAR 60 million from the statutory reserve account to implement the raise transaction.
Meanwhile, East Pipes Integrated will increase its capital to SAR 315 million from SAR 210 million by capitalising SAR 105 million from the retained earnings account.
In addition, the capital raise will be carried out by granting one bonus share for every two owned shares.
Accordingly, the number of shares will become 31.50 million, higher by 10.50 million than 21 million shares.
In the first half (H1) of 2022, eXtra logged net profits after Zakat and tax worth SAR 224.61 million, an annual jump of 23.61% from SAR 181.70 million.
East Pipes Integrated recently secured a SAR 275 million loan from the National Bank of Kuwait (NBK).
