Saudi Cable issues prospectus for its SAR 250 mln rights issue

Saudi Cable Co. posted the prospectus of its SAR 250 million rights issue, the company said in a bourse filing.

Cable set the offering price at SAR 10 a share, to increase capital from SAR 110.61 million to SAR 360.61 million, through floating 25 million shares.

The capital increase is aimed at restructuring the company’s capital and injecting extra money to provide working capital which increases the production capacity and supports future activities.

Rights issue proceeds net of offering fees and costs will go towards financing Aluminum cable productivity increase project, power cable productivity increase project, production lines improvement project and accessory manufacturing project.

The increase will be limited to shareholders of record on the second trading day following the extraordinary general meeting.

Last week, the Capital Market Authority (CMA) approved the company's request to increase its capital by way of rights issue valued at SAR 250 million, according to data compiled by Argaam.

Cable’s shareholders are set to vote on the proposed capital hike on December 31, 2019.