Arabian Pipes submits capital cut, rights issue file to CMA

Logo of Arabian Pipes Co.

Arabian Pipes Co. (APC) submitted, on Dec. 2, its capital cut file and application to increase capital by offering a rights issue for approval to the Capital Market Authority (CMA).

The approval of the extraordinary general assembly meeting (EGM) on the process of increasing the company’s capital is conditional on the EGM’s approval of the proposed reduction of the capital, the company said in a statement to Tadawul.

The company will announce updates regarding this matter 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 increase its capital by 300% from SAR 100 million to SAR 400 million, through a rights issue worth SAR 300 million.