The shareholders of Emirates Driving Company approved the board’s recommendation to split of share nominal value, according to a bourse statement.

The firm will reduce the share nominal value to 50 fills, instead of AED 1. Hence, the number of issued shares constituting the company’s share capital will increase to 179.57 million from 89.78 million shares.

Capital Raise

During the same general assembly meeting, the shareholders also passed the capitalisation of part of the retained earnings at an amount of AED 448.93 million.

The new capital will be AED 538.71 million divided into 1.07 billion shares, with a nominal value of 50 fils.

A total of 897.86 million new shares will be issued against the amount of capital increase resulting from the transaction.

Meanwhile, the shares of capital increase will be distributed to the shareholders pro-rata to their shareholding in the listed company’s share capital at the time of issuance of such new shares.

Khalifa Al Romaithi, Chairman of Emirates Driving, said: “This step comes from the company’s board of directors’ keenness to enhance the liquidity of the company’s shares and increase the trading in the financial market, for the benefit of the company’s shareholders. "

Khaled Al Shemeili, CEO of Emirates Driving, indicated: “This step will help us expand and diversify our investor base by attracting foreign investors, which will enhance liquidity in the Abu Dhabi Securities Exchange Market, in addition to improving the capital flow process and improving performance.”

“The financial market reflects on the economy of the country and the Emirate of Abu Dhabi that impacts to improving the classification of financial markets and raising their competitiveness in the region and the world,” Al Shemeili continued.

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