Red Sea publishes shareholders’ circular for capital hike via SAR 476M debt conversion

Logo of Red Sea International Co.

Red Sea International Co. published today, Oct. 21, the shareholders’ circular for its planned capital increase through SAR 476.02 million in debt conversion.

The circular covered details of the debt conversion transaction, its terms and conditions, the related parties, associated risks, and all other data the company considers material, according to a statement to Tadawul.

Shareholders must carefully read and consider all information contained in the circular prior to making a voting decision. Those in doubt should should consult an independent financial advisor licensed by the Capital Market Authority (CMA).

The company will announce any further material developments on the transaction in due course.

According to Argaam’s data, the CMA approved, on Oct. 1, the company’s capital top-up request through up to SAR 476.02 million in debt conversion.

Red Sea submitted its application in April 2024 to increase capital through debt conversion. At the time, the company explained that, following its review, the total debt to be converted and the resulting capital increase amounted to SAR 476.02 million.

The company added that the planned capital hike will be carried out by converting debts owed to Al-Dabbagh Group Holding Co. as well as the debt obligations arising from the acquisition of Fundamental Installation for Electric Work Co. (First Fix), at a combined value of SAR 476.02 million.