RIYADH: East Pipes Integrated Co. for Industry has invited its shareholders to vote in favor of a 50 percent increase in the company's capital.
The pipe manufacturer is looking to increase its current capital of SR210 million ($56 million) to SR315 million through granting bonus shares, according to a bourse filing.
Shareholders will receive 0.5 shares for every share held through the capitalization of SR105 million from retained earnings.
“The objective of the proposed bonus shares is to provide sustainable returns to shareholders while supporting the company’s strategic investment plans,” the company said earlier.
The vote on the capital increase will take place at the company’s Extraordinary General Assembly Meeting to be held on Oct. 19.
East Pipes had previously reported a 190 percent year-on-year profit surge to SR6.2 million for the second quarter of 2022, buoyed by a higher sales volume.
