MEPCO announces results of capital hike with suspension of preemptive rights

Logo of Middle East Paper Co. (MEPCO)

Middle East Paper Co. (MEPCO) announced the results of subscription to new shares of the capital hike with suspension of preemptive rights as follows: 

In a statement to Tadawul, MEPCO said that the investor who owned capital increase shares with suspension of rights issue shares will not dispose of these shares during the two years following the date of its listing, as per the waiver issued by the Capital Market Authority (CMA). 

The deposit of the new shares into the targeted investor’s account will be announced through the Securities Depository Center Company (Edaa), the statement added. 

According to data compiled by Argaam, the company’s extraordinary general meeting (EGM) approved, on Dec. 28, a board recommendation to increase the company’s capital through issuing 20 million new ordinary shares with the suspension of pre-emptive rights. 

MEPCO said that capital would be increased from SAR 666.67 million (66.67 million equal-value shares) to SAR 866.67 million (86.67 million equal-value shares), with the suspension of preemptive rights. 

The Public Investment Fund (PIF) shall have the right to subscribe on the day of the EGM that decides to increase the capital by offering shares while suspending the pre-emptive right. 

The PIF will fully subscribe to the new shares, raising its ownership to 23.08% of the company after the capital increase.