FIPCO gets CMA nod on capital increase via SAR 115 mln rights issue

Logo of Filling and Packing Materials Manufacturing Co. (FIPCO)

Filling and Packing Materials Manufacturing Co.’s (FIPCO) received the approval of the Capital Market Authority (CMA) to increase its capital through a SAR 115 million rights issue, according to a bourse filing.

The market regulator said eligibility for the rights issue shares will be to shareholders of record with the Securities Depository Center (Edaa) as of the closing of the second trading day after the extraordinary general meeting (EGM), which will be determined by the company's board of directors.

The offering price and the number of shares offered for subscription will be determined by the company after market closing of the same day in which the EGM meeting is to be held.

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

FIPCO’s board of directors recommended, on Feb. 21, increasing the company’s capital through SAR 115 million rights issue.

The capital increase aims to enable the company and its subsidiary to keep pace with the 4G technologies for industries, which is one of the objectives of the Vision 2030 for industrial transformation programs aimed at raising the efficiency of Saudi factories.

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