Development Works Food recommends capital hike via SAR 90M rights issue

Logo of Development Works Food Co. (DWF)

Development Works Food Co.’s (DWF) board recommended on Jan. 2 to increase the company’s capital through a SAR 90 million rights issue, according to a statement to Tadawul.

This capital increase aims to diversify and expand the company’s activities and make optimal use of the spread of its brands to cover all regions of the Kingdom and to achieve the company's future goals in line with its aspirations.

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

The capital top-up recommendation will be subject to the approval of the regulatory authorities as well as the EGM.

The company will make announcements following the appointment of a financial advisor and the submission for the Capital Market Authority’s (CMA) approval in due course.

According to data available with Argaam, DWF’s shareholders rejected the board’s recommendation to increase capital through a SAR 216 million rights offering in December 2023.