The capital increase will be enough to restructure the company and will provide liquidity to help meet customer demands, according to The Saudi Arabian Amiantit Company (Amiantit) CEO Solaiman Al-Twaijri.
“The firm needs funds to increase its operations, and the key reason that affected our operations recently was the lack of enough liquidity to manage operations,” Al-Twaijri told CNBC Arabia.
He also mentioned the firm will focus on regional markets in addition to a local one.
“We have appointed a strategic consultant to draft a three to five-year plan to be presented to the board of directors for approval,” Al-Twaijri said.
The company’s board has recently recommended the capital increase through the issuance of SAR 300 million rights issue.
Below is a table that highlight key development of the firm’s capital increase:
|
Amiantit’s Major Capital Changes |
|
|
Date |
Event |
|
2000 |
A 14% capital hike from SAR 350 mln to SAR 400 mln through bonus shares |
|
2001 |
A 37.5% capital hike from SAR 400 mln to SAR 550 mln through bonus shares |
|
2002 |
An 18% capital hike from SAR 550 mln to SAR 650 mln through bonus shares |
|
2003 |
A 7.6% capital hike from SAR 650 mln to SAR 700 mln through bonus shares |
|
2004 |
A 10% capital hike from SAR 700 mln to SAR 770 mln through bonus shares |
|
2005 |
A capital hike from SAR 770 mln to SAR 1.155 bln through a rights issue |
|
2019 |
A 70.2% capital cut from SAR 1.155 bln to SAR 344.52 mln through writing off 81.05 mln shares |
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