Saudi Paper gets CMA's approval on capital increase via rights issue

Logo of Saudi Paper Manufacturing Co.

Saudi Paper Manufacturing Co. received the approval of the Capital Market Authority (CMA) to increase its capital through a rights issue worth SAR 145 million, according to a bourse filing today, Sept. 15.

Shareholders of record with the Securities Depository Center (Edaa) as of the closing of the second trading day after the extraordinary general assembly meeting, which will be decided by the company's board, will be eligible for the rights offering.

The company will determine the offering price and the number of shares offered for the subscription after the market closes on the same day the EGM meeting will be held.

The authority also noted that its approval of the prospectus should not be considered a recommendation to participate in the offer or invest in the company's shares.

Saudi Paper's board of directors recommended in November 2021 to increase the company's capital through a SAR 145 million rights issue to support expansion and provide working capital, Argaam reported.

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