SPIMACO to pump SAR 14.6 mln for SPIMACO Egypt’s capital hike

Saudi Pharmaceutical Industries and Medical Appliances Co.’s (SPIMACO) board of directors approved on Wednesday a recommendation to increase the capital of SPIMACO Egypt by 199 percent to EGP 200 million from EGP 66.879 million, the firm said in a bourse statement.

The Saudi-listed company will contribute EGP 68.77 million (SAR 14.6) to the capital hike to maintain its 51.66 percent stake in the Egyptian subsidiary.

The amount will be financed from the company’s internal resources, the statement added.

SPIMACO may also increase its stake up to 59.5 percent through contributing a maximum additional amount of EGP 15.73 million, if some partners do not participate in the offering.

SPIMACO Egypt is a closed joint stock company engaged in the manufacture, marketing, import and distribution of pharmaceuticals and pharmaceutical products in Egypt.

The capital increase is aimed to finance new capital expenditures for the company's plant and to finance additional working capital in line with the company's strategic plan to increase its sales over the next five years, the statement also said.

The process is pending related regulatory approvals.