Al Kathiri shareholders approve capital hike to SAR 90.4 mln through rights issue

Al Kathiri Holding Co.'s shareholders approved the board's recommendation on a capital increase, during the company's extraordinary general meeting (EGM) held on Oct. 5, 2020, the company said in a bourse filing.

Capital is increased from SAR 45.21 million (4.5 million shares) to SAR 90.42 million (9.04 million shares) through a SAR 45.2 million rights issue.

The capital hike aims to support the company's expansions and boost working capital to increase its operating capacity and support future projects.

In November 2019, Al Kathiri’s board of directors recommended a capital hike through a SAR 45.2 million rights issue, according to data available on Argaam.

Shareholders also approved amending several articles of association with regards to the company's capital, share offering, incorporation, debt instruments, share buyback and share mortgage.

Meanwhile, Al Kathiri’s daily trading fluctuation limit after its capital hike will be based on a share price of SAR 92.60 as of today, the Saudi Stock Exchange (Tadawul) said in a separate statement.

Meanwhile, all the outstanding orders will be canceled.

The Securities Depository Center (Edaa) will deposit the additional shares into the investor’s portfolios by Oct. 8, 2020, the statement added.