Riyadh – Mubasher: Abdulaziz bin Ahmed Altwijri Trading Company has announced a recommendation from its board of directors to initiate a share buyback program to support an incentive plan.
The proposal involves the repurchase of up to 75,000 ordinary shares for the purpose of establishing an employee stock incentive plan, according to a bourse disclosure.
This strategic move highlights the company’s focus on utilizing treasury shares to align the interests of its workforce with corporate objectives and long-term shareholder value.
The recommendation was officially issued by the board of directors on 2 June 2026, while the primary objective of the buyback is to retain the repurchased equities as treasury shares.
These shares are specifically earmarked for the company’s employees as part of a structured stock program designed to incentivize and reward the firm’s personnel.
Altwijri Trading clarified that the acquisition of these shares will be funded through the company’s internal resources.
By opting for self-financing, the company indicates a reliance on its own liquidity and cash reserves to fulfill the requirements of the buyback without the need for external debt or third-party financing arrangements. This approach reflects a measured use of the company’s capital to support its human resources strategy.
The company currently holds no treasury shares, meaning this initiative represents a new phase in its capital management and employee compensation structure. The 75,000 shares targeted in this proposal represent the maximum limit for the current buyback authorization.
As ordinary shares, they will be transitioned into treasury stock upon the completion of the purchase phase, provided all regulatory and corporate conditions are met.
Implementation of the buyback is contingent upon several critical approvals and compliance measures. The company must obtain the endorsement of its shareholders through an Extraordinary General Assembly meeting.
Furthermore, the company is required to satisfy the financial solvency conditions outlined in the Implementing Regulations of the Companies Law for Listed Joint Stock Companies. These regulatory safeguards are in place to ensure that the buyback does not adversely affect the company’s financial stability or its ability to meet ongoing obligations to creditors and stakeholders.
From a governance perspective, the company noted that the shares repurchased under this program will not carry voting rights in shareholder meetings. As long as the shares are held as treasury stock, they remain inactive in terms of voting power, ensuring that the buyback does not shift the balance of control within the company’s general assembly.
The final execution of the plan remains subject to the upcoming shareholder vote and the fulfillment of all necessary legal requirements as mandated by the Capital Market Authority (CMA) and the Saudi Companies Law.
