Logo of Middle East Paper Co. (MEPCO)
Middle East Paper Co. (MEPCO) issued today, Dec. 7, the prospectus for offering new shares worth about SAR 630 million, while suspending rights issue.
The company plans to offer about 20 million shares at SAR 31.5 each, to increase capital from SAR 666.67 million to SAR 866.67 million.
The capital increase is aimed to reinforce the strategic growth initiatives planned by the company by accelerating its placement as the national leading in Saudi Arabia for the integrated paper and packaging industry and the positioning of the brand name globally.
This is in addition to the development of the company as a key enabler in the waste management and recycling industry, directly contributing to the Saudi Vision 2030, while garnering greater access to resources for external growth through value accretive merger and acquisition opportunities beyond its current domain or capabilities.
MEPCO obtained, on Dec. 4, the Capital Market Authority’s (CMA) approval to increase its capital through issuing about 20 million new shares and suspending preferential rights worth SAR 630 million.
In May, the company inked a memorandum of understanding (MoU) with the Public Investment Fund (PIF), under which the latter will subscribe to the new shares at SAR 31.50 each, representing a significant minority stake.
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Capital Hike Details |
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Current Capital |
SAR 666.67 mln |
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Current Number of Shares |
66.67 mln |
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Capital increase (%) |
30% |
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New Capital |
SAR 866.67 mln |
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Number of Shares after Increase |
86.67 mln |
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Share Offering Key Details |
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Offered Shares |
20 mln |
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Offer Price |
SAR 31.5 |
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Issue Size |
SAR 630 mln |
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Offer Proceeds |
Paper production plant (PM5) |
Land allocation |
50.00 |
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Main equipment contracts |
124.81 |
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PM5 Subtotal |
174.81 |
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Tissue production plant (TM6) |
Main equipment contracts |
90.00 |
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Building construction |
40.00 |
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Equipment installation |
23.98 |
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TM6 Subtotal |
153.98 |
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Acquisition of a set of assets and shares of existing establishments operating in the field of manufacturing and supply of corrugated cardboard to achieve forward integration acquisition |
291.12 |
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Offering costs |
10.09 |
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Total |
630.00 |
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Additional Information |
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Financial Advisor & Lead Manager |
SNB Capital |
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