Arabian Pipes shareholders approve 26% capital hike via bonus shares

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Riyadh — Mubasher: The shareholders of Arabian Pipes Company have ratified the board recommendation to raise the capital by 26% during an extraordinary general meeting (EGM) held on 24 August 2026, according to a bourse filing.

The capital will increase from SAR 200 million to SAR 252 million, with Arabian Pipes aiming to strengthen the company's capital base and support future growth plans.

Meanwhile, the increase of SAR 52 million will be financed by capitalizing retained earnings.

Under the terms of the approval, Arabian Pipes will issue 50 million bonus shares for every four owned shares to eligible shareholders, representing a 25% increase at a ratio of one free share.

The remaining 2 million, representing 1% of the pre-increase capital, will be allocated as treasury shares for a long-term employee incentive program.

Eligibility for the bonus shares extends to shareholders owning stock at the close of trading on the day of the assembly who are registered with the Securities Depository Center (Edaa) by the end of the second following trading day.

The meeting, which saw a 22.95% attendance rate, also resulted in the approval of amendments to articles 7 and 8 of the company’s bylaws concerning capital and share subscription.

Furthermore, the capital increase proposal received 97.45% approval from attending shareholders.

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