MEPCO files capital increase application to CMA

Logo of Middle East Paper Co. (MEPCO)

Middle East Paper Co. (MEPCO) filed today, Sept. 3, an application to the Capital Market Authority (CMA) to increase its capital from SAR 666.67 million to SAR 866.67 million via new shares and suspend the rights issue.

In a statement to Tadawul, the paper producer said that any material developments will be announced in due course.

In May, MEPCO signed a non-binding memorandum of understanding (MoU) with the Public Investment Fund (PIF), under which the latter is set to subscribe to MEPCO’s newly issued shares, Argaam earlier reported.

PIF will subscribe to shares, representing a substantial minority stake in MEPCO, at SAR 31.50 per share. 

The company signed a binding subscription agreement with PIF in July to raise its capital to SAR 866.67 million from SAR 666.67 million and suspend the rights shares by issuing 20 million new ordinary shares, representing 30% of the company's current capital, at a nominal value of SAR 10 per share.

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