Saudi Paper discloses updates on rights issue

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Saudi Paper Manufacturing Co. (SPM) received quotations for the second machine from major international specialized firms, and is currently assessing the technical offers.

SPM added in a bourse filing that it expects to sign a memorandum of understanding (MoU) in this regard during the next three months, to boost production capacity by 30,000 tons annually Regarding Al-Juthoor Paper Tissue Manufacturing Plant in Kuwait, the Saudi-listed firm established a new production unit for the final product with an estimated production capacity of 350 tons per month.

The company clarified that it started the initial operation experiments to run gradually, expecting to begin production at full capacity by Q3 2021.

The new production will have a positive impact on the company's financial results, the statement added.

The paper manufacturer launched SAR 100 million rights issue through offering 10 million shares, at SAR 10 per share, to increase capital from SAR 92 million to SAR 192 million, Argaam earlier reported.

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