Ash-Sharqiyah plans to use rights issue proceeds for future project

Ash-Sharqiyah Development’s logo

Ash-Sharqiyah Development Co. seeks to obtain some initial licenses to implement its future development plans, the company said in a bourse statement.

The plan consists of the following projects: Hydroponics for vegetable production (hydroponic), hydroponics for vegetable production and fish culture (aquaponic), providing marketing services on behalf of others, as well as breeding and production of broiler poultry and operating their hatcheries. It also includes poultry farming, egg production and producing fresh poultry, rabbit and bird meat.

The move does not have any financial impact, the statement said, adding that the company aims to finance such projects through its rights issue proceeds.

The details of the strategic and operational plans will be stated in the rights issue prospectus when published.

On Dec. 30, the board of directors recommended a capital hike through a rights issue of SAR 225 million, according to data compiled by Argaam.