SIDC gets CMA nod on capital hike request via rights issue

Logo of Saudi Industrial Development Co. (SIDC)

The Capital Market Authority (CMA) approved Saudi Industrial Development Co.’s (SIDC) capital top-up request, through a rights issue worth SAR 165 million, according to a statement today, Aug. 10.

Subscription eligibility will be limited to shareholders registered with the Security Depository Center (Edaa) as of the closing of the second trading day after the deciding extraordinary general meeting (EGM), the date for which is yet to be set by SIDC’s board of directors.

The offering price and the number of shares on offer shall be determined by the company after the close of trading on the same day the EGM is due.

The rights issue prospectus will be published to the public at a later date.

The CMA's approval of the proposed move should never be considered as a recommendation to participate in the offer nor invest in the company's shares.

It merely means that the legal requirements as per the Capital Market Law and the Implementing Regulations have been met.