Red Sea board proposes capital hike via SAR 280M rights issue

In a statement to Tadawul, the company said the capital increase aims to support its expansion plans, provide the necessary working capital to strengthen its financial position, and help finance and execute its future projects.

Shareholders of record on the date of the EGM, as well as those registered with the Securities Depository Center Co. (Edaa) at the close of trading on the second day following the EGM, will be eligible to participate in the planned transaction.

The company appointed Alinma Capital as its financial advisor for the proposed capital top-up and for submitting the capital increase application file with the Capital Market Authority (CMA).

Red Sea will announce the filing date for the capital increase application with the CMA, along with any material developments, in due course.

The board recommendation remains subject to approvals from the relevant regulatory authorities and shareholders.

The capital increase is subject to a regulatory lock-up period of six months from the date of Red Sea’s last capital increase, in accordance with the rules and regulations issued by the CMA. The board is also committed to not submitting the capital increase application before the expiry of the aforementioned regulatory period, the statement said.