First Avenue for Real Estate Development Company Announces the Board of Directors’ Recommendation to Increase the Company’s Share Capital Through the Issuance of Bonus Shares to Shareholders
| Element List | Explanation |
|---|---|
| Introduction | First Avenue for Real Estate Development Company announces that its Board of Directors has recommended to the Extraordinary General Assembly an increase of the Company’s share capital through the issuance of bonus shares, with the aim of strengthening the Company’s capital base and enhancing its financial position in line with the growth of its business and expansion of its activities. |
| Date of Board Meeting | 2025-10-14 Corresponding to 1447-04-22 |
| Capital before increase | SAR 205,000,000 |
| Capital after increase | SAR 300,000,000 |
| Percentage of Capital increase | 46.34 % |
| Number of shares before Capital increase | 205000000 |
| Number of shares after Capital increase | 300000000 |
| Reasons for the increase | The Company aims, through this capital increase, to strengthen its capital base in line with the growth of its business and expansion of its real estate projects, and to enhance its financial position to support its future and strategy in growing shareholders’ equity. |
| Number of Shares Granted per Exiting Share | 1- Granting 9 shares for every 20 shares owned to the company’s shareholders registered in the shareholders’ register at the end of the entitlement date.
2- Allocating 2,750,289 treasury shares, representing 1.3% of the Company’s current share capital, to be designated for the Employee Stock Incentive Program |
| Nature and Value of Reserves Used in the Capitalization | The capital increase will be funded by capitalizing an amount of SAR 95,000,000 from the share premium account. |
| Eligibility Date | Eligible shareholders are those holding shares in the eligibility date as per the shareholders registry at the deposit center at the end of the second working day after eligibility date |
| Fractional Shares | If the issuance of bonus shares results in fractional shares, all fractions will be aggregated into a single portfolio and sold in the market within a specified period after the eligibility date. The proceeds from the sale of the fractional shares will be deposited into the accounts of the entitled shareholders based on their respective ownership percentages, within a period not exceeding 30 days from the date of determining the entitled shares for each shareholder. |
| Approvals | The bonus issuance is conditional upon obtaining the required official approvals, including the approval of the Capital Market Authority and the Extraordinary General Assembly, for the capital increase and the number of granted shares. |
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