Saudi Arabian Oil Company (Saudi Aramco) announces the Board of Directors’ recommendation to grant bonus shares by way of capitalizing part of its retained earnings
|Introduction||The Board of Directors of the Saudi Arabian Oil Company (Saudi Aramco) recommends to the Extraordinary General Assembly to grant bonus shares to its shareholders via capitalizing 15,000,000,000 Saudi Riyals from the retained earnings. Each shareholder will be granted one bonus share for every ten shares.|
|Date of Board Meeting||2022-03-18 Corresponding to 1443-08-15|
|Capital before increase||60,000,000,000 Saudi Riyals|
|Capital after increase||75,000,000,000 Saudi Riyals|
|Percentage of Capital increase||25 %|
|Number of shares before Capital increase||200000000000|
|Number of shares after Capital increase||220000000000|
|Reasons for the increase||Capitalization of 15,000,000,000 Saudi Riyals from the retained earnings to grant shareholders one bonus share for every ten shares. |
This aligns with the Company’s aim to maximize shareholders’ total returns through distribution of sustainable and progressive dividends, in line with future prospects, underlying growth in free cash flow, and long-term value creation through investments in available opportunities.
|Number of Shares Granted per Exiting Share||Granting one share for every ten shares.|
|Nature and Value of Reserves Used in the Capitalization||The increase will be through capitalization of 15,000,000,000 Saudi Riyals from the retained earnings.|
|Eligibility Date||The eligibility of the bonus shares shall be for shareholders who own the shares by the end of trading day of the Company’s Extraordinary General Assembly meeting date (which will be announced later) and are registered in the Company’s shareholders record at the Securities Depository Center (Edaa) at the end of the second trading day following the Extraordinary General Assembly meeting date.|
|Fractional Shares||In case of bonus shares fractions occurrence, the Company will collect all fractions in one portfolio for all shareholders to be sold at market price, then the amount will be distributed among the eligible shareholders proportionately as per ownership percentage within a period not exceeding 30 days from the date of determining the due shares for each shareholder.|
|Approvals||The proposed grant is subject to obtaining necessary approvals from relevant authorities and Extraordinary General Assembly on the capital increase and number of granted shares.|
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