The board of directors of the Arabian Pipes Company has recommended cash dividends to shareholders of 17% (0.17 riyal per share) for the fiscal year 2025, as shown in the following table:
In a separate statement, the board of directors of the Arabian Pipes Company also recommended to the extraordinary general assembly an increase in capital from 200 million riyals to 252 million riyals, a 26% increase (granting one share for every four existing shares) through the distribution of free shares by capitalizing 52 million riyals from retained earnings, as shown in the following table:
|
Details of the Capital Increase
|
|
|
Current Capital
|
200 million riyals
|
|
Number of Shares
|
200 million shares
|
|
Capital After Increase
|
252 million riyals
|
|
Number of Shares After Increase
|
252 million shares
|
|
Percentage Increase
|
26%
|
|
Reason for Increase
|
To strengthen the company’s capital base, which contributes to enhancing future growth plans.
|
|
Number of Shares Granted per Share
|
One share will be granted for each shareholder holding four shares
|
|
Method of Increase
|
The increase will be made by capitalizing 52 million riyals from retained earnings by issuing 52 million new ordinary shares as follows:
1. 50 million free shares will be granted to the company’s shareholders registered in the shareholder register (i.e., 25% of the company’s capital before the increase, one share for every four shares).
2. Allocating part of the new shares resulting from the capital increase as treasury shares for an employee incentive program according to a long-term incentive plan, allocating (2 million shares of the new shares resulting from the increase to the employee share program (i.e., 1% of the company’s capital before the increase)
|
|
Record Date
|
For shareholders owning shares on the eligibility date registered with the issuer’s shareholder register at the Depositary Center at the conclude of the second trading day following the eligibility date.
|
The company said in a statement on Tadawul that in the event of fractional shares, they will be collected in one portfolio for all shareholders and sold at market price, and its value will be distributed to the entitled shareholders in proportion to their share, within a period not exceeding 30 days from the date of determining the shares due to each shareholder..
The grant is conditional on obtaining approval from the official authorities and the extraordinary general assembly on the increase in capital and the number of shares granted, the company added.
Riyadh – The Arabian Pipes Company announced on February 23, 2026, that its board of directors has recommended a cash dividend distribution of 17% – or 0.17 riyal per share – for the 2025 fiscal year. The decision reflects the company’s commitment to returning value to its shareholders.
In addition to the cash dividend, the board also proposed a 26% increase in capital, from 200 million riyals to 252 million riyals, through the issuance of one share for every four shares held. This will be achieved by capitalizing 52 million riyals from retained earnings, according to a company filing.
The capital increase will consist of the issuance of 52 million new ordinary shares, with 50 million shares distributed as a free grant to eligible shareholders – representing 25% of the company’s capital before the increase. An additional 2 million shares will be allocated as treasury shares for a long-term employee incentive program.
The eligibility date for the share grant will be determined based on shareholder records at the Depositary Center at the end of the second trading day following the record date. Any fractional shares resulting from the grant will be aggregated, sold at market price, and distributed proportionally to entitled shareholders within 30 days, the company stated.
The proposed capital increase and share grant are subject to approval from regulatory authorities and the extraordinary general assembly.
