CMA approves NADEC’s SAR 2 bln rights issue to raise capital

Logo of National Agricultural Development Co. (NADEC)

Saudi Arabia's Capital Market Authority (CMA) approved the application received from National Agricultural Development Co.’s (NADEC) to increase its capital through a SAR 2 billion rights issue.  

Eligible shareholders are registered with the Security Depository Center (Edaa) as of the close of the second trading day after the extraordinary general meeting (EGM), which the board of directors will determine at a later date. 

The company will set the offering price and number of shares offered after the close of trading on the EGM date. The rights offering prospectus will be issued later. 

An investment decision based on the company’s board recommendation to increase its capital or the CMA’s approval without carefully reading the rights issue prospectus or fully reviewing its content may involve high risk. 

The CMA’s approval of the prospectus should never be considered as a recommendation to participate in the offering or invest in the company’s shares. The CMA’s approval of the prospectus merely means that the legal requirements as per the Capital Market Law and its Implementing Regulations have been met. 

According to the data available on Argaam, NADEC’s board of directors recommended, in April, a capital increase through a SAR 2 billion rights issue. The primary purpose of the capital hike was to execute its strategic and operational plans and support future activities. 

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