Saudi Paper gets CMA's nod on capital hike through SAR 100 mln rights issue

The Capital Market Authority (CMA) gave the go-ahead for Saudi Paper Manufacturing Co. (SPM) to proceed with its capital increase through SAR 100 million rights issue.

Shareholders of record at the Securities Depository Center (Edaa) by the close of the second trading after the extraordinary general meeting (EGM) will be eligible for the rights issue, CMA said in a statement.

It also said that the date of the meeting will be determined by the company's board of directors at a later date, while the offering price and the number of shares to be offered for subscription will be determined by the company by the close of trading on the EGM date.

The rights issue prospectus will be posted and made available to the public at a later time, the statement added.

On April 30, SPM’s board of directors amended its capital hike recommendation to SAR 100 million from SAR 150 million through a rights issue.

The paper manufacturer submitted, on May 7, a request to increase capital through a SAR 100 million rights issue to the Saudi market regulator, Argaam reported.