SVCP board recommends rights issue of SAR 80M

Saudi Vitrified Clay Pipe Co. (SVCP) board of directors recommended on Aug. 6 increasing the capital through a rights issue valued at SAR 80 million.

In a statement to Tadawul, the company said the rights issue will support its growth strategy by diversifying its product range. This includes expanding into the cement products industry at its Saudi Land Factory, establishing a high-density plastic products factory as outlined in the recently signed memorandum of understanding (MoU), and strengthening its operational activities and financial position.

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Eligibility for the rights issue will be for shareholders who hold shares on the date of the extraordinary general meeting (EGM) that approves the capital increase and who are listed with the Securities Depository Center Co. (Edaa) at the end of the second trading day following the EGM date, the company noted.

The board’s recommendation is subject to approval by the relevant regulatory authorities and the shareholders at the EGM.

The company also indicated that it will announce the appointment of a financial advisor for the rights issue and submit the capital increase application to the Capital Market Authority (CMA) in due course.