Shams shares hit highest level since 2013

Logo of Tourism Enterprise Co.

Shares of Tourism Enterprise Co. (Shams) recorded today, Feb. 28, their highest level since 2013, at SAR 221.80.   

The stock rose 2%, with a trading volume of 380,000 shares so far.

The company announced, on Feb. 27, that it signed a non-binding memorandum of understanding (MoU) with Shuaa Capital Saudi Arabia (SHUAA) for potential 100% acquisition of hotels owned by the hospitality funds managed by SHUAA for SAR 735 million, excluding the real estate tax.

The board of directors recently recommended a capital increase through a SAR 525.2 million rights issue, according to data available with Argaam. 

Shams was established in 1991 and converted into a joint stock company in 1996. The stock was listed on the Saudi Stock Exchange (Tadawul) in 1999.  

The company focuses on the tourist resorts across the Kingdom and owns the Palm Beach Resort.

In 2021, the company reduced its capital to SAR 52.6 million from SAR 101.5 million, through share cancelation.