Riyadh – Mubasher: The board members of Al Rashid Industrial Company officially invited its shareholders to attend the extraordinary general meeting (EGM) on 17 June 2026 to vote on the primary agenda for the session that involves a capital increase proposal.
The company’s share capital is proposed to rise by 50% through the issuance of bonus shares, according to a bourse filing.
The proposed capital restructuring aims to raise the capital from SAR 80 million to SAR 120 million by capitalizing SAR 40 million from the company’s retained earnings.
Under the proposal, the total number of shares will rise from 8 million to 12 million shares, with shareholders receiving one bonus share for every two shares currently held.
According to the board, the objective of this capital hike is to strengthen Al Rashid Industrial’s financial position and provide the necessary support for its ongoing growth and operational expansion strategies.
Eligibility for the bonus shares will be granted to shareholders who own stock at the close of trading on the day of the EGM and who are registered in the company’s records at the Securities Depository Center (Edaa) by the end of the second trading day following the eligibility date.
In the event of fractional shares, the company will aggregate them into a single portfolio for sale at market price, with the proceeds distributed proportionately to eligible shareholders within 30 days of the allocation.
Beyond the capital increase, the assembly will address several key financial and administrative items. Shareholders will review and discuss the board of directors' report and the financial statements for the 2025 fiscal year.
The agenda also includes a vote on the auditor’s report for the same year and the appointment of an external auditor from a shortlist recommended by the Audit Committee.
Meanwhile, the selected auditor will be tasked with reviewing the semi-annual and annual financial statements for the 2026 fiscal year.
The meeting will also see a vote on a related party transaction involving Al Rashid Cans and Plastic Products. This transaction is valued at SAR 10.46 million and concerns the sale of company products to the Dubai-based entity. The disclosure notes that Managing Director Mohammed Abdulaziz Al Rashid Al Humaid has a direct interest in the deal, while Chairman Fahd Abdulaziz Al Rashid Al Humaid holds an indirect interest. The board has clarified that these transactions were conducted within the ordinary course of business and without preferential terms.
Furthermore, shareholders will vote on the election of five board members for a new three-year term beginning 2 July 2026 and ending on 1 July 2029.
Other items on the agenda include the approval of SAR 1.14 million in board remuneration for the 2025 fiscal year, the discharge of board members from liability for the same period, and the authorization of the board to distribute interim dividends for the 2026 fiscal year.
The assembly requires a legal quorum of shareholders representing at least 50% of the company’s voting shares to be valid. If this quorum is not met, a second meeting will be held one hour after the scheduled time, which will be considered valid if attended by shareholders representing at least 25% of the voting shares. Electronic voting for the assembly items is scheduled to commence on 13 June 2026 through the Tadawulaty platform.
