Oman and Emirates Investment Holding (OEIHC) financial statements for 2007 Q3 had note 15 giving details of an increase in share capital, and a share split.
Authorised and issued - 7,500,000 shares of RO 1 each
At an extraordinary general meeting of the Parent company's shareholders held on 29 April 2006, the shareholders approved the increase in the authorized share capital to RO 20 Million from RO 7.5 million, grant of a stock dividend at 25% for the year 2005 and also the split of 10 shares having a face value of 100 Baizas each for each share having a face value of RO 1 each held in the Parent company.
The change in the authorized share capital and the splitting of shares is only effective after issuance of a Royal Decree, which is awaited.
I understand it to mean the following.
Present share capital 7,500,000 shares of RO 1 each = 7.5 million RO
7.5m + 25% = 9.375m
10:1 share split = 93.375 m shares x 100 Baiza par value = 9.375m share capital.
So where's the other 10.625m RO coming from (they wanted an increase to RO 20m)?
I wonder if it was supposed to be a 33% bonus ie 7.5m + 2.5m = 10m shares?
And then a 1:1 rights issue at par so we get 10m + 10m = 20m shares, and OEIHC gets another RO 10m in the pot.
And then a 10:1 share split which means 200m shares at 100 Baiza par value, still equals 20m RO.
Increase in Capital and split in share price of OEIHC 20/02/2008
Disclosure from Oman Emirates Investment (OEIHC) is in Arabic only but I think it says share capital to increase from OR 7.5 million to OR 9.375 million (so my previous estimate wasn't too bad then ).
There's a date of 18 February 2008 which might be the date of the disclosure, or the date the changes are effected but there's no obvious change in share price so far this week that would make sense (you'd expect it to be restated by 25% or so when the capital increase takes effect).
There are 2 other dates of 21 & 25 February 2008 which might be more applicable. Or they could refer to the share split. I don't see more information that clarifies the split, not where the extra OR 10.625 million is coming from, that OEIHC wanted originally. _________________ UAE IPO list | posting guidelines
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