Increasing Aramco’s capital to 75 billion riyals

The Capital Market Authority approved the request of the Saudi Arabian Oil Company (Saudi Aramco) to increase its capital from 60 billion riyals to 75 billion riyals by granting a free share for every 10 outstanding shares owned by shareholders registered in the issuer’s shareholder register at the Depository Center at the end of the second trading day following The maturity date, the date of which is determined by the company’s board of directors at a later time.

The Capital Market Authority added that the value of the capital increase is paid by transferring 15 billion riyals from the “retained earnings” item, and thus the number of shares increases from 200 billion shares to 220 billion shares, an increase of 20 billion shares.

The Market Authority stressed that the date of the Extraordinary General Assembly should not exceed 6 months from the date of this approval, provided that the company completes the relevant legal procedures and requirements.

Aramco’s board of directors recommended to the extraordinary general assembly, on March 20, to increase the company’s capital by 25%, by distributing bonus shares to shareholders, by giving one share for every 10 shares owned by shareholders.

Aramco explained that the capital increase comes within the company’s goals to maximize total returns to shareholders by distributing sustainable and increasing profits, in line with future aspirations and growth in free cash flow, and creating higher value in the long term by investing in many opportunities available to the company. .