Lazurde board recommends SAR 143.3 mln rights issue

Lazurde Company for Jewelry’s board of directors recommended today, Oct. 11, a capital increase through a SAR 143.33 million rights issue, the company said in a bourse filing.

The capital hike, which is pending the regulatory and assembly approvals, is aimed to support the future expansion activities as well as provide working capital to increase operational capacity and reduce debt-to-equity ratio.

Shareholders of record on the second day after the extraordinary general meeting will have the right to subscribe to the offering.

The appointment of the financial advisor will be announced later.

In addition, the company will make an announcement when the capital increase application file is submitted to the Capital Market Authority.

Any future developments will be announced in due course, the statement noted.

The proposed capital hike is 33.3% of the current company capital of SAR 430, according to data available with Argaam.