Ash-Sharqiyah Development issues prospectus for SAR 225 mln rights issue

Logo of Ash-Sharqiyah Development Co.

Ash-Sharqiyah Development Co. announced the prospectus for its capital increase through a SAR 225 million rights issue.

The company will offer 22.5 million shares at SAR 10 each. This is to increase capital by 300% to reach SAR 300 million.

Ash-Sharqiyah Development intends to direct the offering proceeds to gradually bring its operational plan into force. The company's management will use these proceeds to start implementing the integrated poultry project.

The company will mainly finance its expansion plans in the poultry segment through the development of an integrated project consisting of three sub-projects: A broiler breeding, a slaughterhouse and an incubator. Part of the offering proceeds will also be used to finance the working capital requirements and reduce liabilities and debt ratio.

The Capital Market Authority (CMA) approved, in November 2022, the company's application to increase its capital to SAR 225 million through a rights issue.

Capital Hike Details
Current Capital	SAR 75 mln
Number of Shares	7.5 mln
Percentage Increase	300%
New Capital	SAR 300 mln
Number of Shares	30 mln

Rights Issue Details
Offered Shares	22.5 mln
Offer Price	SAR 10
Issue Size	SAR 225 mln
Eligibility	Each listed shareholder shall have the right to subscribe to three shares per each owned share
Record Date	Shareholders of record by the end of the trading day of the company’s ordinary general meeting (OGM) date and those registered with the Securities Depository Center Company (Edaa) by the end of the second trading day after the OGM
Rights Issue Proceeds	Expansion in the poultry business	SAR 177.3 mln
	Payment of liabilities	SAR 29 mln
	Working capital	SAR 15 mln
	Payment of the offering fees and costs	SAR 3.7 mln
	Total	SAR 225.0 mln

Additional Information
Financial Advisor, Lead Manager, Lead Bookrunner & Underwriter	Al Khair Capital

For More IPOs

Issue Prospectus

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