CMA OKs Naseej’s SAR 163.5 mln rights issue to raise capital

Logo of Naseej International Trading Co.

The Capital Market Authority (CMA) announced today, Oct. 12, the approval of the application received from Naseej International Trading Co. to increase its capital through a SAR 163.5 million rights issue.

Eligible shareholders are those registered with the Security Depository Center (Edaa) as of the close of the second trading day after the extraordinary general meeting (EGM), which the board of directors will determine later, the market regulator said in a statement.

The company will set the offering price and number of shares offered after the close of trading on the EGM date.

The CMA's approval came after reviewing Naseej’s application in light of the regulatory requirements, as well as the quantitative and qualitative criteria applicable to all companies requesting a capital increase. The rights issue prospectus will be made available to the public later.

This approval should never be considered as a recommendation to participate in the offering or invest in the company’s shares. It merely means that the legal requirements as per the Capital Market Law and its Executive Regulations have been met.

On March 28, Naseej’s board approved increasing capital from SAR 108.97 million to SAR 163.46 million via a rights issue.

The capital hike is aimed to cut financing costs and support the company’s strategic shift to unit-based operation, Naseej said.

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