Wafrah shareholders to vote on capital hike via SAR 154.3 mln rights issue on May 16

Wafrah for Industry and Development Co. shareholders will vote on capital increase through offering 15.43 million rights issue shares, during the extraordinary general assembly meeting (EGM), to be held on May 16, according to a bourse filing.

On April 4, the Capital Market Authority (CMA) approved the company's application to raise its capital through a SAR 154.3 million rights issue.

Capital will be increased by 200% to SAR 231.51 million from SAR 77.17 million, through offering rights shares at a nominal value of SAR 10 each.

The company aims to use the funds to expand its activities, automate production line and optimize brand reach to cover all regions in the Kingdom. This is expected to have a positive impact on the company’s profit and goals.

Each listed shareholder has the right to subscribe to six shares per each owned share.

Eligibility to the rights issue shares will be to shareholders of record by the close of trading on the EGM date.