Saudi Industrial Export proposes SAR 54 mln rights issue

Saudi Industrial Export Co.'s (SIECO) board of directors on Thursday recommended increasing capital through SAR 54 million rights issue following the planned capital cut, the company said in a statement to Tadawul Sunday.

Shareholders of record on the date of extraordinary general assembly approving the rights issue, including those registered at the Securities Depository Center two days later, are eligible for the capital hike.  

The rights issue is subject to the approval of competent regulatory authorities, the company added.

Through the planned capital hike, SIECO aims to restructure its capital and inject fresh funds to deleverage its balance sheet.

Saudi Kuwaiti Finance House, a wholly-owned subsidiary of the Kuwait Finance House, was hired by the company as financial advisor for the target capital reduction and was recommended by the board to manage the rights issue.

Earlier this month, SIECO board of directors proposed a 90 percent capital reduction to SAR 10.8 million form SAR 108 million, in order to offset accumulated losses, Argaam reported.