Logo ofArabian Pipes Co.
Arabian Pipes Co. said its extraordinary general meeting (EGM), scheduled for July 27 to vote on the proposed 26% capital increase through bonus shares, was not held due to the failure meet the required legal quorum. 
In a statement to Tadawul, the company said it will invite shareholders to a third EGM once the meeting date has been set and the necessary regulatory approvals have been obtained.
It added that the third EGM will be deemed valid regardless of the number of shareholders or shares represented.
According to data available with Argaam, Arabian Pipes’s board of directors recommended in February a 26% capital hike, from SAR 200 million to SAR 252 million, by issuing one bonus share for every four existing shares through the capitalization of SAR 52 million from retained earnings.
Details
Current Capital
SAR 200 mIn
Number of Shares
200 mIn
New Capital
SAR 252 mIn
New No. of Shares
252 mIn
Percentage of Increase
26%
Reason
To strengthen the company’s capital base and support future growth plans.
Bonus shares
1 bonus share for every 4 shares held
Method
Through capitalization of SAR 52 million from retained earnings by issuing 52 million new ordinary shares:
A total of 50 million bonus shares will be distributed to shareholders of record, representing 25% of the company’s pre-increase share capital, at a ratio of one bonus share for every four existing shares.
The remaining 2 million newly issued shares, equivalent to 1% of the company’s pre-increase share capital, will be allocated as treasury shares for the long-term Employee Stock Incentive Program (ESIP).
Record Date
Shareholders of record registered with Edaa by the end of the second trading day following the record date.
Logo ofArabian Pipes Co.
Arabian Pipes Co. said its extraordinary general meeting (EGM), scheduled for July 27 to vote on the proposed 26% capital increase through bonus shares, was not held due to the failure meet the required legal quorum.
In a statement to Tadawul, the company said it will invite shareholders to a third EGM once the meeting date has been set and the necessary regulatory approvals have been obtained.
It added that the third EGM will be deemed valid regardless of the number of shareholders or shares represented.
According to data available with Argaam, Arabian Pipes’s board of directors recommended in February a 26% capital hike, from SAR 200 million to SAR 252 million, by issuing one bonus share for every four existing shares through the capitalization of SAR 52 million from retained earnings.
Details
Current Capital
SAR 200 mIn
Number of Shares
200 mIn
New Capital
SAR 252 mIn
New No. of Shares
252 mIn
Percentage of Increase
26%
Reason
To strengthen the company’s capital base and support future growth plans.
Bonus shares
1 bonus share for every 4 shares held
Method
Through capitalization of SAR 52 million from retained earnings by issuing 52 million new ordinary shares:
A total of 50 million bonus shares will be distributed to shareholders of record, representing 25% of the company’s pre-increase share capital, at a ratio of one bonus share for every four existing shares.
The remaining 2 million newly issued shares, equivalent to 1% of the company’s pre-increase share capital, will be allocated as treasury shares for the long-term Employee Stock Incentive Program (ESIP).
Record Date
Shareholders of record registered with Edaa by the end of the second trading day following the record date.
