Saudi Cable board proposes capital hike via SAR 400M rights issue

Logo of Saudi Cable Co.

Saudi Cable Co.’s board of directors recommended a capital increase via a SAR 400 million rights issue, according to a statement to Tadawul.

The increase will be used to restructure capital and boost working capital to support operating capacities as well as future business activities, aligning with the proposed financial restructuring plan.

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Shareholders of record on the extraordinary general meeting (EGM) date and those registered with Edaa on the second trading day following the general meeting date will be eligible for the capital increase.

The capital hike will be subject to the approval of the Capital Market Authority (CMA) and the other relevant competent authorities, in addition to the approval of the general meeting.

The company will announce the appointment of a financial advisor and a lead manager later.

Any related updates will be disclosed in due course, the statement added.

Saudi Cable reported a net profit of SAR 36.6 million in 2023, versus a net loss of SAR 580.5 million a year earlier, data compiled by Argaam showed.

The company's accumulated losses reached SAR 506.76 million, or 759% of capital.

A trading halt was placed on the stock on Tadawul on March 20, 2024.