Al Naqool scraps capital increase recommendation

Logo of Mohammed Hasan Al Naqool Sons Co.

Mohammed Hasan Al Naqool Sons Co.’s board of directors canceled its recommendation to increase the capital via a rights issue, according to a statement to Tadawul.

Al Naqool notified the Capital Market Authority (CMA) of the withdrawal of its request, the statement added.

The company attributed its decision to the availability of funding sources that were not available at the time, which contributed to covering the company’s current projects.

In addition, the company stressed that it has a clear plan to complete its future projects and expansions without the need to increase capital.

The relevant updates will be duly revealed, the statement added.

In August 2022, the company submitted to the CMA a file to increase its capital through a rights issue worth SAR 58 million, according to Argaam.

On Nov. 9, 2021, the company's board of directors changed its recommendation to the extraordinary general meeting (EGM) on raising capital through a SAR 58 million rights issue instead of a bonus share distribution.

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