‎Dar Almarkabah EGM approves reverse stock split

Dar Almarkabah for Renting Cars Co. said shareholders approved the board’s recommendation for a reverse stock split, raising the par value per share to SAR 10 from SAR 0.50.

The decision was made during an extraordinary general meeting (EGM), held on Nov. 11.

The number of shares will decrease to 2.5 million from 50 million following the reverse split, while share capital will remain unchanged at SAR 25 million, Dar Almarkabah said in a statement to Tadawul.

Reverse Stock Split Highlights

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Current Capital

SAR 25 mln

Current No. of Shares

50 mln

Current Par Value

SAR 0.5/share

New Capital

SAR 25 mln

New No. of Shares

2.5 mln

New Par Value

SAR 10/share

The reverse stock split will apply to all shareholders who own shares on the EGM date and who are registered at the Securities Depository Center (Edaa) by the end of the second trading day following the EGM.

The adjustment to the share price will take effect on the first business day following the EGM, while the revised number of shares will be reflected in shareholders’ portfolios by the end of the second trading day after the meeting.

Shareholders also approved an amendment to Article 6 of the company’s articles of association, relating to share capital.

In a separate statement, Tadawul said the stock’s daily price fluctuation limits will be based on a share price of SAR 60.20, and all outstanding orders will be canceled.

Trading in the company’s shares will be suspended for two business days starting Nov. 12 to allow Edaa to reflect the reverse stock split in shareholders’ portfolios. The suspension will be lifted by the end of Nov. 15.

Dar Almarkabah for Renting Cars Co. said shareholders approved the board’s recommendation for a reverse stock split, raising the par value per share to SAR 10 from SAR 0.50.

The decision was made during an extraordinary general meeting (EGM), held on Nov. 11.

The number of shares will decrease to 2.5 million from 50 million following the reverse split, while share capital will remain unchanged at SAR 25 million, Dar Almarkabah said in a statement to Tadawul.

Reverse Stock Split Highlights

Current Capital

SAR 25 mln

Current No. of Shares

50 mln

Current Par Value

SAR 0.5/share

New Capital

SAR 25 mln

New No. of Shares

2.5 mln

New Par Value

SAR 10/share

The reverse stock split will apply to all shareholders who own shares on the EGM date and who are registered at the Securities Depository Center (Edaa) by the end of the second trading day following the EGM.

The adjustment to the share price will take effect on the first business day following the EGM, while the revised number of shares will be reflected in shareholders’ portfolios by the end of the second trading day after the meeting.

Shareholders also approved an amendment to Article 6 of the company’s articles of association, relating to share capital.

In a separate statement, Tadawul said the stock’s daily price fluctuation limits will be based on a share price of SAR 60.20, and all outstanding orders will be canceled.

Trading in the company’s shares will be suspended for two business days starting Nov. 12 to allow Edaa to reflect the reverse stock split in shareholders’ portfolios. The suspension will be lifted by the end of Nov. 15.