FIPCO board agrees to convert FPC to joint stock company, ups capital to SAR 70 mln

Logo of Filling and Packing Materials Manufacturing Co.

Filling and Packing Materials Manufacturing Co.’s (FIPCO) board of directors approved by circulation, on May 30, to transform the legal entity of FPC - in which FIPCO owns 100% of its paid-up capital of SAR 18 million - from a limited liability company to a joint stock company.

The board also decided to set an authorized capital of SAR 100 million and raise the paid-up capital from SAR 18 million to SAR 70 million. The capital hike will be financed through using some of the current account balances between partners.

This transformation will support FPC’s future expansions, maintain its stability and sustainability, support the company’s financial position, drive export sales and improve credit relationships with some major international  clients to increase export share, FIPCO said in a statement to Tadawul. 

This update will not have a material impact on the company's financial results, while the financial impact of the capital structure will appear on financial statements as of Q2 or Q3 2023, depending on the company's ability to complete the relevant regulatory procedures with governmental authorities.

FIPCO will continue to take all measures to enhance its ability to involve new investments and activate the maximum benefit from the operational activities’ integration between FIPCO and its subsidiary. 

This is in addition to improving efficiency, considering all stakeholders' rights and focusing on areas with significant growth opportunities, which will contribute to enhancing the company's profitability and maximizing the value of shareholders' investments in the long run. 

Any material developments in this regard will be announced in due course.