Fawaz Alhokair files with CMA for capital cut, rights issue

Logo of Fawaz Abdulaziz Alhokair Co. 

Fawaz Abdulaziz Alhokair Co. submitted today, Jan. 17, its capital cut file and application to increase capital through a rights issue for approval to the Capital Market Authority (CMA).

Alinma Investment Co. and Credit Suisse Saudi Arabia have been appointed as joint financial advisors for the proposed capital increase. Alinma Investment has been appointed as lead manager and underwriter for the capital increase.

The capital decrease and increase are subject to the applicable regulatory approvals, including the approval of the company’s extraordinary general assembly (EGM).

In November 2021, the company’s board of directors recommended 46.2% capital reduction from SAR 2.10 billion to SAR 1.130 billion to offset accumulated losses, according to data available with Argaam.

Meanwhile, the board recommended capital increase through SAR 1 billion rights issue.