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Shareholders of Arabian Pipes Co. have officially approved the board of directors' recommendation to increase the company's capital by 26% through a bonus share issue. The approval came during the Extraordinary General Meeting (EGM) held on August 24. Under the terms of the corporate action, the company's capital will rise from SAR 200 million to SAR 252 million by capitalizing SAR 52 million from retained earnings.
The capital expansion involves issuing one bonus share for every four existing shares held by registered equity holders. Out of the 52 million new shares created, 50 million shares will be distributed directly to eligible shareholders, while the remaining 2 million shares are set aside as treasury shares to fund a long-term Employee Stock Incentive Program (ESIP). The record date for the eligibility of bonus shares was set for August 24, 2026.
This corporate development is designed to strengthen Arabian Pipes' financial framework and support its long-term strategic growth plans within the Saudi industrial sector. Investors and market analysts view such bonus issues positively as they reflect retained earnings growth, though the share price will be adjusted post-distribution to account for the increased total share supply.
