Announces the Board’s Recommendation to Increase the Capital by Granting Bonus Shares

Element List	Explanation
Introduction	Arabian Pipes company announces that the Board of Directors in its meeting held on 19/02/2026G corresponding to 02/09/1447H has recommended to the Extraordinary General Assembly the following :

1- Recommendation to increase the Company's share capital by 26% , from SAR 200,000,000 to SAR 252,000,000 , by capitalizing SAR 52,000,000 from retained earnings , through the issuance of 52,000,000 new ordinary shares Out of these 52,000,000 bonus shares will be granted to the Company's shareholders registered in the shareholders register ( representing 50% of the company's capital before the increase at a rate of 1 bonus share for every 4 shares hold)

2- Recommendation to allocate part of the new shares resulting from the capital increase as treasury shares for the Employee Stock Option Program under the long Term incentive Plan by allocating 2,000,000 shares from the newly issued shares to the employee stock program (representing 1% of the company's capital before the increase) Date of Board Meeting 2026-02-19 Corresponding to 1447-09-02 Capital before increase 200,000,000 SAR Capital after increase 252,000,000 SAR Percentage of Capital increase 26 % Number of shares before Capital increase 200000000 Number of shares after Capital increase 252000000 Reasons for the increase By increasing the capital, the company aims to strengthen the company's capital base, thus contributing to enhancing future growth plans. Number of Shares Granted per Exiting Share 1 share every 4 shares Nature and Value of Reserves Used in the Capitalization Only 52,000,000 Saudi riyals will be capitalized from the retained earnings. Eligibility Date Eligible Shareholders are Those Holding Shares in the Eligibility Date as per the Shareholders Registry at the Deposit Center at The End of The Second Working Day after Eligibility Date Fractional Shares In the event of fractional shares, the fractions will be collected in one portfolio for all shareholders and sold at the market price, then their value will be distributed to the shareholders entitled to the grant, each according to his share, within a period not exceeding 30 days from the date of determining the new shares due to each shareholder. Approvals The grant is conditional on obtaining the approval of the official authorities and the extraordinary general assembly on the increase in the capital and the number of granted share

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