United Electronics Company (eXtra) shareholders approve capital increase to support long-term expansion strateg

04/05/2013

Khobar, Saudi Arabia; April 05, 2013: United Electronics Company (eXtra) today announced that shareholders have approved a 25 per cent share capital increase through the distribution of free shares at an Extraordinary General Meeting (EGM) held on April 1, 2013, at the Al Fozan Tower in Khobar.

Shareholders voted to approve an increase in eXtra’s share capital from SAR 240 million to SAR 300 million in order to support the company’s future expansion plans. In recent months, eXtra has established a regional presence with the launch of operations in Bahrain and Oman, alongside the opening of new stores in Saudi Arabia.

Shareholders registered on eXtra’s books at the close of trading on the day of the EGM will receive one free share for every four shares they currently own. The capital increase will be covered by transferring SAR 60 million from the company’s retained profits account as of December 31, 2012. In so doing, the number of shares issued will increase from 24 million to 30 million.

“Alongside continually expanding our product offering, we have made enormous progress over the last year in building eXtra’s footprint both at home and abroad,” said Abdullah Abdulatif Al Fozan, Chairman, United Electronics Company (eXtra). “As we move forward with the next phase of our long-term growth strategy, it is vital that we have the correct funding base in place. We are delighted that our shareholders have given their support to our ambitious network expansion plans, and we look forward to rewarding their trust over the coming years.”

eXtra was recently named as one of “The Top 200 Companies in the GCC” by Forbes Middle East, and also ranked as one of the Top 5 Services companies in the Kingdom of Saudi Arabia. In both 2010 and 2011, eXtra was cited by the Saudi Arabian General Investment Authority (SAGIA) as one of the Kingdom’s fastest-growing companies. In addition, eXtra was also recently named as one of the Arabia 500 top companies in recognition of its exceptional growth and sustained commercial success.