Arabian Pipes invites shareholders to vote on 26% capital raise
APC
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Riyadh – Mubasher: Arabian Pipes Company has invited its shareholders to attend an Extraordinary General Assembly Meeting (EGM) scheduled for 27 July 2026 to vote on a board recommendation to increase the company’s capital by 26%.
The proposed expansion, valued at SAR 52 million, is intended to strengthen the company’s capital base and support its future growth strategic plans. The meeting will be conducted virtually via modern technology, allowing shareholders to participate and vote remotely through the Tadawulaty system.
The proposed capital increase will see the company’s share capital rise from SAR 200 million to SAR 252 million. Under the terms of the proposal, the number of outstanding shares will increase from 200 million to 252 million. This adjustment will be executed through the capitalization of SAR 52 million from the company’s retained earnings account.
According to the disclosure, the issuance is divided into two primary components. First, the company intends to grant 50 million bonus shares to existing shareholders at a ratio of one bonus share for every four shares held, representing a 25% increase.
Second, the remaining 2 million shares, representing 1% of the pre-increase capital, will be allocated as treasury shares to support a Long-Term Incentive Plan (LTIP) for the company’s employees.
Eligibility for the bonus shares will be granted to shareholders who own stock at the close of trading on the day of the EGM and who are registered in the company’s share registry at the Securities Depository Center (Edaa) by the end of the second trading day following the assembly date.
In the event of fractional shares resulting from the distribution, Arabian Pipes confirmed that these fractions will be consolidated into a single portfolio and sold at market price.
The resulting proceeds will then be distributed proportionately to eligible shareholders within a period not exceeding 30 days from the date the entitlement is determined.
Beyond the capital increase, the assembly will vote on amending Article 7 and Article 8 of the company's Bylaws, which pertain to the company's capital and share subscription, respectively, to reflect the new financial structure.
Shareholders will also be asked to approve the employee incentive share program and authorize the Board of Directors to determine the specific terms and conditions of the program, including the allocation price for each share offered to employees.
The meeting is scheduled to take place at 18:30 on 27 July 2026. For the first meeting to be considered valid, a quorum of shareholders representing at least 50% of the company’s capital is required.
Should this quorum not be met, a second meeting will be held one hour after the scheduled time for the first, which will be valid if attended by shareholders representing at least 25% of the capital.
Electronic voting on the assembly’s agenda will open at 01:00 on Thursday, 23 July 2026, and will remain available until the conclusion of the meeting. The company has emphasized that registration and voting through the Tadawulaty platform are provided free of charge to all shareholders.
Source: Mubasher Source: {{details.article.source}}