Saudi Ceramics EGM OKs 25% capital hike via bonus issue

Logo of Saudi Ceramic Co. (Saudi Ceramics)

Saudi Ceramic Co.’s (Saudi Ceramics) extraordinary general meeting (EGM), held on June 26, approved a 25% capital increase through distributing bonus shares, capitalizing SAR 200 million from the retained earnings, as shown in the following table:

In a statement to the Saudi Exchange (Tadawul) today, June 27, the company clarified that any fractional shares will be combined into a single portfolio for all shareholders and sold at market price.

The proceeds will then be distributed to eligible shareholders, as per their respective ownership, within a period not exceeding 30 days from the date of determining the new shares eligible for each shareholder.

Saudi Ceramics’ shareholders also approved the transfer of SAR 241.7 million, representing the balance of the statutory reserve as of Dec. 31, 2023, to the retained earnings account.

Moreover, they approved the employee stock program and authorized the board of directors to set the terms of the program, including the allocation price for each share offered to employees.

Shareholders further approved the company's purchase of up to 320,000 existing shares, to be earmarked for the employee stock program.

The purchase will be financed through the company's own resources, and the board was authorized to complete the purchase process within a maximum period of 12 months from the EGM date.

The company will retain the purchased shares for a maximum of three years from the date of the EGM's approval, to be allocated to eligible employees. Afterwards, the company will adhere to the procedures and controls outlined in the applicable laws and regulations, according to the statement.

In a separate statement today, Tadawul said the daily trading fluctuation limits for Saudi Ceramics after its capital increase will be based on a stock price of SAR 27.85 as of today.

Accordingly, the outstanding orders will be canceled. The Securities Depository Center (Edaa) will deposit the bonus shares into investor portfolios by July 1.