Arabian Pipes appoints FALCOM as financial advisor for capital cut, increase via rights issue

Logo of Arabian Pipes

Arabian Pipes Co. appointed today, July 7, FALCOM Financial Services as a financial advisor for its capital reduction.

The insurer said in a statement to Tadawul that FALCOM will also manage the following capital increase and subscription to the rights issue.

The company will announce later when the capital increase request file will be submitted to the Capital Market Authority (CMA).

Any further development will be announced in due course.

Last June, Arabian Pipes’ board of directors recommended a capital decrease by 75% to SAR 100 million from SAR 400 million, to amortize accumulated losses, Argaam earlier reported.

The board of directors also recommended that, after completing the capital decrease process, the company will increase its capital by 300% from SAR 100 million to SAR 400 million, through a rights issue worth SAR 300 million.

The capital increase is aimed at supporting working capital, strengthening the company's finances, reducing the borrowing rate, developing and modernizing the company's factories in Riyadh and Jubail, and expanding a number of products supporting pipe services within the business.