CMA OKs Development Works Food SAR 216 mln rights issue to raise capital

Logo of Development Works Food Co.

The Capital Market Authority (CMA) approved an application submitted by Development Works Food (DWF) to increase its capital through a SAR 216 million rights issue, the market regulator announced in a statement. 

The rights issue will be limited to shareholders registered with the Security Depository Center (Edaa) by the close of the second trading day after the extraordinary general meeting (EGM), whose date will be determined by the board later.

DWF will set the offer price and size after the close of trading on the EGM date.

The CMA's approval came after reviewing the company’s application in light of the regulatory requirements, as well as the quantitative and qualitative criteria applicable to all companies requesting a capital increase.

The rights issue prospectus will be posted and made available to the public later.

DWF’s board in December 2021 he recommended a capital increase by SAR 216 million through a rights issue, according to data available with Argaam.