CMA OKs AYYAN’s SAR 200M rights issue to raise capital

Logo of AYYAN Investment Co.

AYYAN Investment Co. obtained the approval of the Capital Market Authority (CMA) to raise its capital by SAR 200 million rights issue, according to a statement today, May 22.

Eligible shareholders are those registered with the Securities Depository Center (Edaa) by the close of the second trading day after the extraordinary general meeting (EGM) covened to vote on the capital hike.

The offer price and the number of shares on offer will be determined later by the company by the close of trading on the EGM date and after aligning with the CMA's applicable regulations.

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AYYAN will issue the rights issue prospectus later, the statement added.

The CMA's approval should never be considered a recommendation to participate in the offer or invest in the company's shares. It merely means that the legal requirements, as per the Capital Market Law and its Implementing Regulations, have been met.

In August 2023, AYYAN’s board of directors recommended increasing capital through a SAR 200 million rights offering. The move is seen to enable the company to implement its operational plans and support working capital, according to data available on Argaam.