CMA approves Maadaniyah’s 16.7% capital cut, SAR 120 mln rights issue

Logo of National Metal Manufacturing and Casting Co.

The Capital Market Authority (CMA) approved a request by National Metal Manufacturing and Casting Co. (Maadaniyah) to reduce its capital to SAR 234 million from SAR 281.12 million, the market regulator said in a statement.

Accordingly, the number of shares will be reduced from 28.11 million to 23.4 million.

The CMA nod is conditional on the company’s extraordinary general meeting (EGM) approval and completion of necessary procedures.

In addition, the regulator approved the company’s request to increase capital through a SAR 120 million rights issue.

The increase will be limited to the shareholders registered in the shareholders’ registry at the Security Depository Center Co. (Edaa) as of the closing of the second trading day after the EGM, which the board of directors will determine at a later date.

The offering price and the number of shares offered for subscription will be determined after the market closing of the same day on which the EGM meeting is to be held.