Bahri’s Board Proposes Capital Increase via Share Bonus and 5% Dividend Payout

The Board of Directors of the National Shipping Company of Saudi Arabia “Bahri” has recommended a capital increase of 50% through the allocation of one share for every two shares held, and has also recommended the distribution of dividends in cash to shareholders for the year 2022 in measure of 5%.

The company said in a statement on “Tadawul Saudi Arabia” today, Wednesday, that it was decided to increase the capital to 7.38 billion riyals, compared to 4.92 billion riyals before the increase, an increase of 50%.

And he continued: “The capital increase is part of the company’s strategy to strengthen the capital base in line with the future aspirations for expansion and growth, and to create greater long-term value by investing in the many opportunities available to the company”.

He specifies that the increase will take place through the issue of new shares in ratio of one share for every two shares owned, bringing the company’s number of shares after the increase to approximately 738.281 million shares, compared to approximately 492.187 million shares before the increase.

The company said the capital increase will be through the capitalization of 351.75 million riyals from the legal reserve and about 2.12 billion riyals from retained earnings.

Shareholders holding shares on the expiry date and registered in the issuer’s shareholders’ register at the Depository Center at the end of the second open market day following the expiry date are entitled to share capital increase.

In case in to which fractional shares are allotted, these will be collected in a single portfolio for all shareholders and sold at market price, therefore their value will be divided among the shareholders entitled to the assignment, each according to their share within a period not exceeding 30 days from the date of determination of the new due shares to each partner.

The company specifies that the assignment is to be considered subordinate to the approval of the competent official authorities and the approval of the extraordinary shareholders’ meeting on the capital increase and on the number of shares assigned.

He added that the Board of Directors has recommended distributing dividends in 5% cash to shareholders for the year 2022, for a total value of 246.09 million riyals, spread over 492.18 million shares, with a share of 0.50 riyals per share.

Saudi National Shipping Company “Bahri” net profit for last fiscal year amounted to 1.04 billion riyals, compared to 192.4 million riyals in 2021, an increase of more than 440%.