Al Mojil shareholders to get SAR 1.5 bln seized funds, says company lawyer

Aggrieved shareholders of Mohammad Al Mojil Group (MMG) are expected to receive compensation from the SAR 1.5 billion in seized assets owned by the company’s former chairman, a lawyer for MMG told Al Arabiya TV.

Asem Al-Eissa, who’s representing MMG shareholders in the case, also said banks in question will get their dues upon the liquidation process.

On Sunday, Al Arabiya reported on the Saudi justice ministry’s order to seize the assets owned by former chairman Mohammad Hamad Al Mojil as a precautionary measure.

The company’s management is expected to be held responsible if damages were caused as a result of pricing on its initial public offering (IPO). The case revealed a higher-than-usual issue premium set during the IPO. 

According to Article 59 of the kingdom’s capital market law, compensation in lawsuits filed by the Capital Markets Authority (CMA) against manipulators either goes to shell-shocked shareholders or the market regulator.

Last March, Argaam had reported on the ministry of commerce and industry’s referral of several MMG board directors to the kingdom's bureau of investigation and public prosecution.