Alhokair Submits Application File to CMA to Decrease Capital then Increase it

Fawaz Abdulaziz Alhokair Company announced on Monday its submission of application file to CMA on Sunday the 16.01.2022 to reduce the share capital by SR969, 202,370, and then increasing the share capital by offering of rights Issue in the amount of SR1, 000,000,000.

Alinma Investment Company and Credit Suisse Saudi Arabia have been appointed as joint financial advisors with respect to the share capital increase process. Alinma Investment Company has been appointed as the Lead manager and underwriter for the proposed share capital increase.

The company added that the subject of the application is to reduce the capital, and then increase the capital by offering rights shares

The company indicated on Tadawul on Monday that the approval of the extraordinary general assembly on the process of increasing the Company’s share capital by issuing of Rights Issue is subject to the extraordinary general assembly’s approval of the proposed reduction of share capital.

The company will announce any future developments in this regard in due course.

This comes with reference to the Company’s announcement on 11.11.2021 relating to the board of directors’ recommendation to reduce the Company’s share capital and then increasing the share capital by way of rights issue in the amount of SR1,000,000,000 as well as the company’s announcement of the update to the recommendation of its board of directors recommendation to reduce the company’s capital and subsequently increasing it by way of rights issue on 10.01.2022, and subject to obtaining the approval of the relevant official authorities and the extraordinary general assembly, the company concluded.