Wafrah OGM approves changes to use of capital hike proceeds

Wafrah shareholders approved the discharge of the board from liability for 2025

Wafrah for Industry and Development Co. said its ordinary general meeting (OGM) approved the board’s recommendation to amend the use of proceeds from the capital increase, originally approved under the prospectus dated May 23, 2022, due to operational developments and shifting priorities.

In a statement to Tadawul, the company said shareholders also approved the remaining agenda items, including the discharge of the board from liability for 2025.

The OGM further approved the appointment of RSM Allied Accountants Professional Services (RSM) as the company’s external auditor to review the financial statements for 2026 and Q1 2027, for a total fee of SAR 370,000.

According to Argaam data, the company launched a rights issue in 2022 worth SAR 154.3 million, stating at the time that the capital increase aimed to expand its operations, automate production lines and better leverage its brand presence across all regions of the Kingdom.

The planned use of proceeds included expanding production lines at the frozen meat factory (SAR 44 million), developing and expanding production lines at the plant-based products factory (SAR 40 million), upgrading production lines at the pasta and breakfast cereals factories, as well as supporting working capital requirements and covering offering-related expenses.