Arabian Pipes says capital hike request to SAR 300 mln ‘valid’, under CMA review

Logo of Arabian Pipes Co.

Arabian Pipes Co. (APC) announced that the previous board of directors’ recommendation on June 9, 2021, to increase capital by SAR 300 million after reducing it is still valid, according to a bourse filing today, Feb. 8.

The capital increase request, submitted to the Capital Market Authority (CMA) on Dec, 5, 2021, is still under review by the authority. The company is awaiting their approval and an extraordinary general meeting (EGM) will be called for this purpose.

The reason of splitting the capital reduction and increase requests as the deadline granted for the listed joint stock companies of work suspension based on the Royal Order No. 15016 on Nov. 2, 2020, expires on March 5, 2022.

The EGM will be called for the purpose of reducing the capital after completing the necessary approvals as soon as possible.

The board of directors, on Feb. 7, decided to amend its recommendation related to reducing the company's capital, followed by an increase through offering right issue shares.

In June 2021, Arabian Pipes’ board recommended a capital decrease by 75% to SAR 100 million from SAR 400 million, followed by an increase of its capital through a rights issue worth SAR 300 million, Argaam reported.

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