Al-Jouf Agricultural recommends capital increase via share issuance, rights suspended

Al-Jouf Agricultural Development Co. said its board recommended on Aug. 23 increasing the company’s capital by issuing 4.5 million new ordinary shares, with pre-emptive rights suspended.

The new shares will represent 15% of the company’s current capital and 13.04% of its capital after the increase, according to a statement to Tadawul.

Almunajem Foods Co. will fully subscribe to the new shares under a subscription agreement signed between the two companies on July 26, 2026.

The shares will have a nominal value of SAR 10 each and an offer price of SAR 52.5, giving the issuance a total value of SAR 236.25 million.

Almunajem will own 20.3% of Al-Jouf Agricultural’s capital, including its existing stake, following the increase.

The capital increase aims to support Al-Jouf Agricultural’s strategy, infrastructure, and ancillary services as it shifts from traditional agricultural activities toward an integrated agro-industrial business model, the company said.

It will also strengthen the company’s ability to expand into food manufacturing and value-added products, it added.

Shareholders registered on the date of the extraordinary general meeting will be eligible for the capital increase. Subscription will be limited to Almunajem under the subscription agreement.

The increase is subject to several conditions, including approvals from the Capital Market Authority (CMA) and Tadawul, approval by Al-Jouf Agricultural’s shareholders for the issuance and allocation of the new shares, and the necessary internal approvals from Almunajem.

Al-Jouf Agricultural appointed Sadeed Financial as financial adviser for the potential capital increase and said it would announce when it submits the application to the CMA for approval.