CMA Approves National Metal Manufacturing, Casting Company’s Request

16 Sep 2021

Maaal Riyadh

The Capital Market Authority (CMA) has approved the National Metal Manufacturing and Casting Company’s request to reduce its capital from SR281120,890 to SR234,000,000, thus reducing the number of shares from 28,112,089 shares to 23,400,000 .

The approval is conditional on the Company’s extraordinary assembly approval and completion of the necessary procedures, in relation to the applicable regulations.

The Company will publish a disclosure document to its shareholders related to the proposed method of capital reduction and the expected effect of such reduction within sufficient time prior to the Extraordinary General Assembly Meeting to enable shareholders to vote on the capital decrease.

اقرأ المزيد

CMA’s approval of a particular company’s application to reduce its capital should never be viewed as an endorsement of the feasibility of the capital decrease. Its approval of a company’s application to reduce its capital merely means that the regulatory requirements as per the Capital Market Law and its Implementing Regulations have been met.

In addition, CMA has issued its resolution approving National Metal Manufacturing and Casting Company’s request increase its capital by way of rights issue valued at SR120,000,000.

Approval is conditional on the company’s extraordinary general assembly approval of the capital reduction and completion of the necessary procedures in relation to the applicable regulations.

The increase will be limited to the shareholders who are registered in the shareholders registry at the Security Depository Center as of the closing of the second trading day after the extraordinary general assembly meeting, which will be determined by the Company’s board of directors at a later date.

Offering price and the number of shares offered for subscription will be determined by the Company after market closing of the same day in which the extraordinary general assembly meeting is to be held.

After reviewing the Company’s application in light of the governing regulatory requirements, and the quantitative and qualitative criteria applicable to all companies requesting a capital increase, the CMA has issued its resolution approving National Metal Manufacturing and Casting Company’s capital increase request highlighted above. The rights issue prospectus will be posted and made available to the public at a later time.
An investment decision based on the Company’s board recommendation to increase its capital or the CMA’s approval without carefully reading the rights issue prospectus or fully reviewing its content may involve high risk.

Therefore, investors should carefully read the prospectus, which contains detailed information on the Company, the offering and risk factors. Thus, providing investors the ability to evaluate the viability of investing in the offering, taking into considerations the associated risks. If the prospectus proves difficult to understand, it is recommended to consult with an authorized financial advisor prior to any investment decision.
CMA’s approval of the prospectus shall never be considered as a recommendation to participate in the offer nor invest in the Company’s shares, as the approval of the prospectus merely means that the legal requirements as per the Capital Market Law and its Implementing Regulations, have been met.