SIECO says SAR 172.8 mln capital hike request still ‘valid’, under CMA review

Logo of Saudi Industrial Export Co.

Saudi Industrial Export Co. (SIECO) announced that the board of directors’ previous recommendation to increase the company's capital by SAR 172.8 million after a reduction is still valid, according to a bourse filing today, Feb. 10.

The capital increase request file, which was submitted to the Capital Market Authority (CMA), is still under review by the authority.

SIECO is awaiting CMA 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 soon.

Additionally, the CMA’s approval to reduce the company’s capital was received on Feb. 7.

An EGM will be called for the purpose of reducing the capital after completing the necessary approvals as soon as possible. The meeting will be held before the deadline, the statement said.

According to the data available with Argaam, the CMA recently approved SIECO’s request to reduce its capital from SAR 64.8 million to SAR 21.6 million, and accordingly reduce the number of shares from 6.48 million to 2.16 million.

The company had announced the recommendation to reduce the capital from SAR 64.8 million to SAR 21.6 million, at a rate of 66.66%, and then increase it by 800% to SAR 194.4 million through offering rights shares.