NADEC board proposes SAR 2 bln rights issue

National Agricultural Development Co. (NADEC)

National Agricultural Development Co.’s (NADEC) board of directors recommended during a meeting on April 3, a capital increase through a SAR 2 billion rights issue. 

In a statement to Tadawul, the company pointed out that the main purpose for the capital hike is to execute its strategic and operational plans and support future activities. 

The record date will be on the day of the extraordinary general meeting (EGM), during which the proposal is approved, for shareholders registered with Edaa by the close of the second trading day following the EGM. 

Riyad Capital was appointed as financial advisor for the rights issue. It will provide financial advice regarding the capital increase structure, and prepare the related documents as per the regulatory requirements. 

NADEC will make an announcement once the capital increase file is submitted to the Capital Market Authority for approval. The capital hike is subject to the competent authorities and the EGM’s approvals. 

In January, NADEC launched a new 2023-2027 strategic plan (under “New Dawn” slogan). The plan aims to strengthen the company's position across food markets at the local and regional levels, to grow and expand by entering into new activities, Argaam earlier reported. 

The company seeks to transform into an integrated food company with a sales target of SAR 6 billion by 2027. 

A financial plan will be developed for restructuring and enhancing the company’s financial solvency, to implement the strategic and operational plans and support the future activities.

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