United International Holding Company announces the Board of Directors' recommendation to increase the company capital by granting bonus shares
| Element List | Explanation |
|---|---|
| Introduction | The Board of Directors of United International Holding Company decided, in its meeting held on March 23, 2025, to recommend to the Extraordinary General Assembly to increase the company’s capital by 200% in order to support the company’s financial position. As a result, the company’s capital will increase from SAR 250 million to SAR 750 million, and the number of shares will rise from 25 million shares to 75 million shares. The details of the capital increase are as follows:
A. Distribution of 47 million bonus shares to shareholders at a ratio of 1.88 shares for every 1 share owned by the shareholder, which is equivalent to 47 shares for every 25 shares owned, representing a 188 % increase in the company’s capital. This is subject to obtaining the necessary approvals from the relevant authorities and the Extraordinary General Assembly. Entitlement to the bonus shares will be for shareholders holding shares on the eligibility date at the end of trading on the day of the company’s Extraordinary General Assembly, which will be announced later, and who are registered in the company’s shareholder register at the Securities Depository Center Company (Edaa) at the end of the second trading day following the date of the Extraordinary General Assembly. In the event of fractional shares, all such fractions will be collected into a single portfolio and sold at market price, with the proceeds to be distributed to the eligible shareholders pro rata within a period not exceeding 30 days from the date of determining the entitlement of each shareholder. B. Allocation of 3 million shares to establish the employee shares program (long-term incentive plan), subject to obtaining the necessary regulatory approvals where applicable and the approval of the Extraordinary General Assembly, which will be announced later. |
| Date of Board Meeting | 2025-03-23 Corresponding to 1446-09-23 |
| Capital before increase | 250,000,000 SAR |
| Capital after increase | 750,000,000 SAR |
| Percentage of Capital increase | 200 % |
| Number of shares before Capital increase | 25000000 |
| Number of shares after Capital increase | 75000000 |
| Reasons for the increase | support the company’s financial position |
| Number of Shares Granted per Exiting Share | A. Distribution of 47 million bonus shares to shareholders at a ratio of 1.88 shares for every 1 share owned, which is equivalent to 47 shares for every 25 shares owned.
B. Allocation of 3 million shares to establish the employee shares program (long-term incentive plan). |
| Nature and Value of Reserves Used in the Capitalization | The value of the capital increase will be financed by capitalizing SAR 500 million from the Statutory Reserve Account, the Additional Capital Contribution Account, and the company's Retained Earnings. |
| Eligibility Date | With regard to the bonus shares for shareholders: eligibility will be for shareholders who own the shares on the entitlement date at the end of trading on the day of the Company’s Extraordinary General Assembly Meeting (the date of which will be announced later), and who are registered in the Company’s shareholders’ register with the Securities Depository Center Company (Edaa) at the end of the second trading day following the date of the Extraordinary General Assembly Meeting, which will be announced later. |
| Fractional Shares | With regard to the bonus shares for shareholders: In the event of fractional shares, all fractional shares will be collected into a single portfolio for all eligible shareholders and sold at the market price. The proceeds from the sale will then be distributed to the eligible shareholders in proportion to their respective entitlements within a period not exceeding 30 days from the date of determining the shares due to each shareholder. |
| Approvals | The capital increase is subject to obtaining the approval of the relevant regulatory authorities and the Extraordinary General Assembly on the increase in capital and the number of granted shares. |
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