Molan Steel Recommends Capital Increase Through Priority Rights Issue

Molan Steel Co. announced on Sunday that its Board of Directors has recommended increasing the company’s capital by SAR 26,600,000 through a rights issue. According to the company’s statement on Tadawul, the proceeds from the rights issue will be used to purchase assets, expand operations, and finance working capital.

The eligibility for the rights issue will be extended to shareholders who hold shares on the date of the Extraordinary General Assembly meeting. The shareholders must be registered in the Issuer’s Shareholders Register at the Depository Center by the end of the second trading day following the General Assembly meeting.

In addition, the Board of Directors has recommended transferring the issuance premium balance of SAR 4.7 million, as of June 30, 2024, to the retained earnings (losses) account. This move aims to offset the company’s accumulated losses, which amount to SAR 3.7 million (13.97% of the capital), as per the financial statements for the six-month period ending June 30, 2024.