Saudi: United Electronics Company’s shareholders approve 33% capital hike

PHOTO

Riyadh – The shareholders of United Electronics Company (eXtra) agreed to increase its capital by SAR 200 million to SAR 800 million from SAR 600 million, according to a bourse filing.

The 33.33% capital hike will be carried out by granting seven bonus shares for every 25 owned shares.

Accordingly, the new capital will be distributed over 80 million shares, instead of 60 million shares.

In order to complete the transaction, eXtra will transfer SAR 140 million from the retained earnings account and SAR 60 million from the statutory reserve account. The capital increase aligns with the company’s objective to strengthen its financial position.

It is worth noting that the shareholders granted their approval for the capital raise during the extraordinary general meeting (EGM) that was held on 5 October 2022.

Last September, the Capital Market Authority (CMA) greenlighted the Saudi listed firm’s capital raise.

In the first six months (6M) of 2022, the electronics firm posted a 23.61% year-on-year (YoY) growth in net profit after Zakat and tax to SAR 224.61 million from SAR 181.70 million.