The Saudi Industrial Development Company (SIDC) said it has won regulatory approval from the kingdom's Capital Market Authority (CMA) to more than double its capital from SAR135 million ($36 million) to SAR300 million ($80 million) through a rights issue. 

 

Accordingly, the number of company's ordinary shares will increase from 13.5 million to 30 million, an increase of 16.5 million ordinary shares at a ratio of (1.222) shares for every one owned share and at an offering price of SAR10 per share, said SIDC in its filing to Saudi bourse Tadawul.

 

The Saudi group said the rights issue will be open only for those who are registered in its shareholders’ register at the Securities Depository Center Company (Edaa) at the end of the second trading day following the date of the EGA that approves the capital increase through a rights issue, which will be announced at a later stage. 

 

The approval from CMA came yesterday (August 10) after SIDC fulfilled all the regulatory requirements and comments relating to the capital increase application including publishing the rights issue prospectus and inviting the company’s Extraordinary General Assembly (EGA) in this regard.

 

The company will now have to get the go-ahead from its shareholders at the EGA and completing all relevant regulatory procedures and requirements.