Capital Market Authority approves 36% capital increase of APICO through bonus shares

Logo of Arabian Plastic Industrial Company - APICO

The Capital Market Authority announced the issuance of its decision approving the request of Arabian Plastic Industrial Company (APICO) to increase its capital from SAR 75 million to SAR 102 million by granting one free share for every three existing 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 eligibility date, which the company's board of directors will determine later.

The authority added in a statement that the value of the capital increase will be paid by transferring an amount of SAR 26.6 million from retained earnings and an amount of SAR 386,000 from additional capital, thus increasing the number of shares from 7.5 million to 10.2 million, an increase of 2.7 million shares.

It pointed out that the date of the extraordinary general assembly must not exceed six months from the date of this approval, and the company must complete the relevant statutory procedures and requirements.

According to Argaam data, the board of directors of APICO recommended in March 2026 to increase the company's capital by 36% from SAR 75 million to SAR 102 million through granting free shares, as shown in the following table:

Details of capital increase

Capital before increase

SAR 75.0 million

Number of shares

7.5 million shares

Percentage of capital increase

36%

Method of increase

Capitalization of SAR 27 million from retained earnings and additional capital account

Bonus free shares

One free share for every 3 shares owned

Treasury shares

200,000 shares (1.96% of capital after increase to be used in long-term employee incentive programs or any other strategic purposes approved by the board)

Capital after increase

SAR 102.0 million

Number of shares after increase

10.2 million shares

Reasons for increase

Support the company's expansion plans, strengthen its financial position, and support long-term employee incentive programs to attract, retain, and motivate talent

Eligibility date

For shareholders who own shares on the eligibility date and are registered in the issuer's shareholder register at the Depository Center at the end of the second trading day following the eligibility date

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