Aldrees Petroleum to hike capital by 33%

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Aldrees Petroleum & Transport Services Company is a Saudi joint stock company.
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  • The company's board took the decision a few days back, expected to enhance its financial robustness and propelling it towards future expansions
  • The hike in capitalization has been secured from the retained earnings, reflecting the company's strong financial standing and prudent management

Riyadh, Saudi Arabia–Aldrees has announced a substantial increase in its capital. The decision, made in a board meeting on January 25, 2024, is set to enhance the company’s financial robustness, propelling it towards future expansions.

Prior to this resolution, the company’s capital stood at $200 million. The increase now elevates it to a striking $266 million, marking a 33.33% rise. This bold move translates into an increase from 75 million to 100 million shares, directly benefiting shareholders.

A key highlight of this development is the grant of one bonus share for each three shares currently held by shareholders. This strategy not only strengthens shareholder value but also consolidates their confidence in the company’s growth trajectory.

The increase in capitalization is strategically sourced from the retained earnings, reflecting the company’s solid financial standing and prudent reserve management.

For shareholders, the dividend eligibility is tied to share ownership by the end of the trading day of the upcoming General Assembly meeting. This eligibility extends to those registered at the Depository Center within two trading days post the meeting.

Addressing fractional shares from bonus shares, the company has devised a plan to aggregate and sell them at market price within 30 days post-allocation. This ensures a fair and efficient process for all involved.

This capital boost, however, is contingent upon receiving necessary approvals from relevant authorities and the extraordinary general assembly meeting, where the final decision on the capital increase and share grant will be ratified.

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