East Pipes shareholders to vote on 50% capital increase via bonus shares on Oct. 19

Logo of  East Pipes Integrated Co.

East Pipes Integrated Co.’s shareholders are set to vote on increasing the company’s capital by 50%, from SAR 210 million to SAR 315 million, during the extraordinary general assembly meeting slated for Oct. 19, according to a bourse filing.

The process will take place through distributing one bonus share for every two shares held and will be financed by capitalizing an amount of SAR 105 million from retained earnings account, as the table below indicates:

By increasing its capital, the company aims to maximize shareholders wealth that balance between investment growth and dividends distribution, in line with future prospects, underlying growth in free cash flow, and long-term value creation through investments in available opportunities, the company noted.

Meanwhile, the EGM agenda includes other items such as related party transactions.