Edarat Group to consider 50% capital raise through free shares, dividends payout

EDARAT
9557 1.20% 405.00 4.80 2P
7204.B 0.00% 0.00 0.00

Riyadh – Mubasher: Edarat Communication and Information Technology Company will hold a shareholders meeting on 14 June 2026 to vote on a board’s recommendation to increase the capital by 50% through the issuance of bonus shares.

During the extraordinary general meeting (EGM), the shareholders will discuss capitalizing SAR 25.20 million from retained earnings by granting one share for every two owned shares, according to a bourse filing.

This strategic move is designed to bolster the company’s capital base and provide the necessary financial flexibility to pursue future growth activities and maintain its current expansion policy.

Edarat Group intends to raise its capital from SAR 50.40 million to SAR 75.60 million. Consequently, the total number of outstanding shares will rise from 5.04 million to 7.56 million shares after the hike transactions.

If approved, eligibility for these bonus shares will be granted to shareholders registered in the company’s records at the Securities Depository Center (Edaa) by the end of the second trading day following the date of the EGM.

Beyond the capital restructuring, the meeting agenda includes several critical items regarding the company’s financial governance and operational framework.

Shareholders will be asked to vote on authorizing the board of directors to distribute interim dividends on a semi-annual or quarterly basis for the 2026 fiscal year.

The assembly will also review and discuss the financial statements and the board’s report for the fiscal year ending 31 December 2025.

Furthermore, the meeting will address the appointment of an external auditor to review the quarterly and annual financial statements for 2026 and the first quarter (Q1) of 2027.

Governance and transparency are also central to the upcoming meeting. The agenda includes a vote on SAR 750,000 remuneration for board members for 2025, as well as the ratification of several related-party transactions.

 These include substantial service contracts with Al Moammar Information Systems (MIS), where Chairman Abdullah bin Ghazi Al Ghamdi holds an indirect interest. These contracts involve services provided totaling approximately SAR 77.55 million and purchased services amounting to SAR 6.09 million.

Other transactions involve Excellence Medical Systems and Edarat Lebanon, involving various board members with direct or indirect interests.

Source: Mubasher Source: {{details.article.source}}