Al-Khodari’s board recommends capital hike to settle liabilities

Abdullah A. M. Al-Khodari Sons Company’s (Al-Khodari) board of directors on Sunday recommended a capital hike through the issuance of new shares, in order to settle the builder’s liabilities to vendors and major shareholder Abdullah A.M. Al Khodari Sons Investment Holding Company.

The board recommended a capital increase of up to SAR 250 million, whereby new shares will be granted to vendors in order to settle all or part of the company’s outstanding payments.

Al-Khodari also recommended a capital increase of up to SAR 135 million, with the new shares to be offered to Abdullah A.M. Al Khodari Sons Investment Holding to settle outstanding payments, the company said in a statement to Tadawul.

The board has authorized the company’s executive management to negotiate partial or full settlements of the liabilities.

The capital hike, which is pending regulatory and extraordinary general assembly approvals, aims to improve the contractor’s liquidity and credit profile.