CMA nods to Savola's capital hike via rights issue

Logo of Savola Group

The Capital Market Authority (CMA) approved Savola Group's request to increase its capital via a SAR 6 billion rights issue, according to a statement today, July 31.

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The approval came as the company's application fulfilled the regulatory requirements and obligations related to corporates filing for a capital top-up, the regulator said.

The rights issue prospectus will be published and made available to the public at a later time.

Subscription eligibility will be limited to shareholders registered with the Security Depository Center (Edaa) as of the closing of the second trading day after the extraordinary general meeting (EGM), the date for which is yet to be set by Savola's board of directors.

The offering price and the number of shares on offer shall be determined by the company after the close of trading on the same day the EGM is due.

In February, Savola’s board recommended increasing capital via a SAR 6 billion rights issue and distributing its entire 34.52% stake in Almarai Co. to eligible shareholders, pending necessary approvals and the convention of an EGM, data compiled with Argaam showed.