Al Sorayai board recommends SAR 112.7 mln rights issue

Al Sorayai Trading and Industrial Group's board of directors on Sept. 24 recommended a capital hike through a SAR 112.66 million rights issue, the company said in a bourse statement.

The capital hike comes as part of the group's strategy that aims to boost financial solvency through business restructuring and the adoption of a business plan that focuses on core activities.

The planned capital increase is subject to the approval of regulatory authorities and Al Sorayai shareholders. Other developments will be disclosed later on after submitting the capital hike file to the Saudi Capital Market Authority (CMA), Al Sorayai said.

Shareholders of record on the second day after the extraordinary general meeting will have the right to subscribe to the offering.

Aljazira Capital was hired as the financial advisor, the statement added.

Al Sorayai shareholders approved a 70.89 percent capital cut to SAR 65.5 million from SAR 225 million during the extraordinary general assembly meeting held on Aug. 28, Argaam reported.