Enma Alrawabi board recommends buyback of up to 500,000 shares

Logo of Enma Alrawabi Co.

Enma Alrawabi Co.’s board of directors recommended initiating regulatory procedures for the repurchase of up to 500,000 ordinary shares, to be retained as treasury shares.

In a statement to Tadawul today, Dec. 19, the company added that this decision will be voted on during the upcoming extraordinary general meeting (EGM), the date for which will be announced in due course.

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The EGM will also approve the required amendments to the company's bylaws and authorize the share buyback. This will be conducted in accordance with the requirements and conditions stipulated in Article 17 of the executive regulations of the Companies Law for listed joint-stock companies.

A solvency report, prepared by the company's external auditor, will be appended to the EGM invitation designated for deciding on the move.

According to the company, the repurchase is aimed at retaining these shares as treasury shares, to be allocated under the employee stock program, pledge them, sell them as needed, or exchange them in acquisition transactions.

The share buyback will be financed through the company’s internal resources.

Enma Alrawabi also indicated that the buyback is conditional on EGM’s approval, adding that the financial solvency requirements contained in the executive regulations issued pursuant to the Companies Law shall be fulfilled.