Anaam recommends capital hike via SAR 105M rights issue

Logo of Anaam International Holding Group

Anaam International Holding Group’s board of directors recommended today, Jan. 5, a capital increase through a rights issue worth SAR 105 million.

In a statement to Tadawul, the company said the purpose of the increase is to fund working capital, reduce borrowing rates, as well as support, develop, and enhance its future activities.

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The eligibility for the rights issue will apply to shareholders of record on the date of the extraordinary general meeting (EGM), which will approve the capital increase. This is in addition to shareholders registered with the Securities Depository Center Co. (Edaa) by the end of the second trading day following the EGM.

The company further announced the appointment of Albilad Capital as the financial advisor for the subscription process and the submission of the capital increase request.

Anaam stated that it will announce the date of submitting the capital increase request to the Capital Market Authority (CMA) and provide updates on any future developments in due course.

The capital increase is subject to the approval of the relevant regulatory authorities and the EGM.

According to data available with Argaam, the company's EGM rejected in July 2024 a prior recommendation by the board to increase capital by 75% through a rights issue of 472.5 million shares, valued at SAR 236.25 million.

On Dec. 10, 2024, the board recommended reversing the nominal value of the company’s stock from SAR 0.50 per share to SAR 10. Accordingly, the total number of shares declined from 630 million to 31.5 million, following a stock split in July 2023 that led to a decline in the nominal value from SAR 10 to SAR 0.50 per share.