Al Moammar’s capital hike boosts financial position, supports credits: chairman

Al Moammar Information Systems Co.’s capital hike will boost its financial position and pave the way for credit facilities to support its future expansions and existing projects, CNBC Arabia reported citing chairman, Khalid Al Moammar.

Al Moammar added that the company faced some difficulties in implementing some contracts in Q2 2020, nevertheless, he expected positive results “now that things returned to normal”.

He further explained that operations were not affected by COVID-19 repercussions, as the pandemic’s impact on the technology sector was minimal, noting that it was positive in some cases due to the nature of remote work.

On the company’s debts, Al Moammer said that the total loans hit around SAR 350 million by the end of Q1 2020, highlighting that the amounts might fluctuate based on the funding requirements. According to data compiled by Argaam, Al Moammar’s shareholders approved, on June 1, a SAR 40 million capital hike to SAR 200 million from SAR 160 million to boost resources and record high growth rates in the coming years.

The capital hike will be financed from capitalizing a portion of reserves and retained earnings, in addition to distributing one share for every 4 outstanding shares.