NADEC issues prospectus for capital hike via SAR 2 bln rights issue

Logo of National Agricultural Development Co. (NADEC)

National Agricultural Development Co. (NADEC) announced the prospectus for its capital increase through a SAR 2 billion rights offering.

The company’s capital will be raised by 196.8% to SAR 3.016 billion, through offering 200 million shares at an offer price of SAR 10 each.

According to the prospectus, the company aims, through the capital increase, to boost it financial solvency so as to implement its strategic and operational plans and support its future activities to strengthen its position in the foodstuff markets at the local and regional levels in a manner that enables NADEC's current business to grow and further expand the range of its products by entering into new activities, in order to transform into an integrated foodstuff firm, in line with the strategy adopted by the Kingdom for food security to ensure sustainable supply chains, abundance of foodstuffs, and stable prices in the local market.

The company's shareholders will vote on the board's recommendation to increase capital via rights issue worth SAR 2 billion, during an extraordinary general assembly meeting, scheduled to be held on Nov. 5, 2023.

The Capital Market Authority (CMA) approved, on Oct. 5 2023, the request received from the company to increase capital through rights issue, as per Argaam's data.

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