Riyadh – Mubasher: Arabian Pipes Company has issued a formal update regarding the board of directors' recommendation to increase the capital through the issuance of bonus shares, according to a bourse filing.
The company confirmed that it is currently finalizing the necessary regulatory requirements and administrative procedures to facilitate the capital restructuring, following its initial proposal announced on 23 February 2026.
Arabian Pipes aims to increase the share capital by 26% through the capitalizing SAR 52 million from retained earnings. The company will grant one bonus share for every four held shares.
The capital will rise to SAR 252 million from SAR 200 million through the issuance of 52 million new ordinary shares. Out of these bonus shares will be granted to the company's shareholders registered in the shareholders register (representing 50% of the company's capital before the increase)
This type of corporate action is typically utilized by listed firms to capitalize retained earnings or statutory reserves, thereby strengthening the company’s formal capital base without requiring direct cash contributions from investors.
Arabian Pipes noted that it will announce the date for the upcoming extraordinary general assembly (EGM) once all necessary regulatory formalities have been concluded.
The company further clarified that there are currently no changes to the costs associated with this corporate event. Additionally, the disclosure indicated that there are no financial impacts resulting from the current timeline of the administrative and regulatory process.
