Saudi Arabian pipe maker East Pipes is seeking shareholders’ approval to increase the company’s capital by 50% through the issuance of bonus shares.
East Pipes intends to raise its capital to SAR315 million ($83.8 million) from the current SAR210 million, according to a disclosure on the Saudi Stock Exchange (Tadawul) on Monday.
As part of the plan, the total number of shares will go up from 21 million to 31.5 million. Shareholders will get one share for every two shares owned in the company.
Last August, the company announced the board of directors’ recommendation to issue bonus shares and raise the company’s capital, citing that it is looking to “provide sustainable returns to shareholders, while supporting the company’s strategic investment plans.”
“We aim to retain internal resources to deliver on East Pipes’ current backlog, which is testament of the positive momentum in our industry,” said Mohammed Al Shaheen, CEO at East Pipes.