Aldrees approves 25% capital hike, 10% dividend for FY16

Aldrees Petroleum and Transport Services Co.’s extraordinary general assembly approved on Sunday a board recommendation to increase the company’s capital by 25 percent to SAR 500 million from SAR 400 million, through the issue of one bonus share for every four shares held.

The petroleum retailer will capitalize SAR 100 million of retained earnings in order to facilitate the increase, it said in a statement to Tadawul.

The capital hike is aimed at enhancing the company’s business and expansions.

Shareholders of record at the end of the extraordinary assembly meeting approving the capital hike will be eligible for the increase.

Fractional shares will be accumulated in one portfolio and will be sold at market price within a maximum of 30 days after allotment.

Aldrees shareholders also approved the issue of a 10 percent cash dividend (at SAR 1 per share), as well as remuneration of SAR 200,000 for each board member for fiscal year 2016.