CMA approves Al-Baha's capital hike via SAR 120 mln rights issue

Logo of Al-Baha Investment and Development Co.

The Capital Market Authority approved today, Dec. 13, the request received from Al-Baha Investment and Development Co. to increase its capital via SAR 120 million rights issue, according to a statement.

Eligibility to the rights shares will be to shareholders who are registered in the shareholders' registry at the Securities Depository Center (Edaa) as of the closing of the second trading day after the extraordinary general assembly meeting, which will be determined by the company's board of directors at a later date.

The offering price and the number of shares offered for subscription will be determined by the company after market closing of the same day in which the EGM is to be held, it added.

Upon reviewing the company's application in light of the governing regulatory requirements, and the quantitative and qualitative criteria applicable to all companies requesting a capital increase, the CMA has issued its decision approving the company's capital increase request highlighted above. The rights issue prospectus will be posted and made available to the public at a later time.

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, CMA said.

Therefore, investors should carefully read the prospectus, which contains detailed information on the company, the offering and risk factors. Thus, providing investors the ability to evaluate the viability of investing in the offering, taking into considerations the associated risks. If the prospectus proves difficult to understand, it is recommended to consult with an authorized financial advisor prior to any investment decision, it added.

The CMA's approval of the prospectus should never be considered as a recommendation to participate in the offer nor invest in the Company's shares. The CMA's approval of the prospectus merely means that the legal requirements as per the Capital Market Law and its Implementing Regulations have been met.

The company's board of directors recommended in November 2020, increasing capital via a SAR 120 million rights issue, with the aim of financing the company’s future expansions and offset the accumulated losses, according to Argaam's data.

For More IPOs