Edarat Calls Shareholder Meeting for 50% Capital Hike

Edarat Communication and Information Technology Co. (Edarat) announced it will hold an Extraordinary General Assembly Meeting on June 14, 2026 at 20:30 via modern technology through the Tadawulaty platform. The main agenda item is voting on a capital increase from SAR 50,400,000 to SAR 75,600,000, representing a 50% increase.

Capital Increase Details

The increase will be executed by capitalizing SAR 25,200,000 from retained earnings and granting one bonus share for every two shares held. This move aims to strengthen the company's financial structure without requiring additional cash from shareholders.

Other Agenda Items

The meeting will also address amendments to the company's Articles of Association to reflect the capital increase, authorization for the Board to distribute interim dividends for 2026, approval of Board remuneration of SAR 750,000 for 2025, and related-party transactions including services with Al Moammar Information Systems Company totaling SAR 77,551,462 and SAR 6,088,868.

What This Means for Investors

The capital increase via bonus shares signals the company's financial health and ability to generate retained earnings. Investors should monitor the voting outcome and the subsequent impact on the share price post-meeting.