CMA approves Amiantit's SAR 346.5M rights issue to raise capital

Saudi Arabian Amiantit Co. headquarters

The Capital Market Authority (CMA) approved the application received from Saudi Arabian Amiantit Co. to increase its capital through a SAR 346.5 million rights offering.

Eligible shareholders are those registered with the Security Depository Center (Edaa) as of the close of the second trading day after the extraordinary general meeting (EGM), which will be determined by the board of directors at a later date, according to CMA’s statement today, Jan. 24.

The offering price and number of shares offered will be set by the company after the close of trading on the EGM date. The rights offering prospectus will be issued later.

The CMA’s approval should never be considered as a recommendation to participate in the offering 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.

An investment decision based on the company’s board recommendation to increase its capital or the CMA’s approval without carefully reading the rights issue prospectus or fully reviewing its content may involve high risk.

In September 2023, Amiantit’s board of directors recommended increasing capital through a SAR 346.5 million rights issue to fund working capital and repay some bank obligations, according to data compiled by Argaam.