FIPCO completes procedures for converting its subsidiary FBC Industries to closed joint stock company, raises capital to SAR 70 mln

FILLING & PACKING MATERIAL. MFG. CO. (FIPCO) announced on Thursday that all relevant procedures with concerned governmental authorities had been finalized to officially transform FPC legal structure from a limited liability company to a closed joint stock company as well as increase the Paid-up capital from SR 18 million to SR 70 million, accordingly the new bylaws has been issued and the commercial register has been updated.

FIPCO assures Today on Tadawul that This transformation will support FPC objectives aiming to future expansions, also it will maintain its stability and sustainability, and will support the company’s financial position, which supports increasing export sales and improves the credit relationship with some large foreign clients to increase the company’s export share and in line with the needs of global markets. Moreover, it gives it the necessary legal flexibility for any future transformations to come.

The Company indicated that this update will not have a material impact on the company’s financial results, while the financial impact of the new capital structure will appear in the company’s financial statements as of the 4th quarter of the fiscal year 2023.

FIPCO will continue to take all measures that contribute to enhancing the company’s ability to involve in new investments with the aim of activating the maximum benefit from the operational activities integration between FIPCO and its subsidiary, improving the efficiency, taking into account the rights of all stakeholders, and focusing on areas that have significant growth opportunities, which will contribute to enhancing the company’s profitability and maximizing the value of shareholders’ investments on the long run.

This comes further to what has been disclosed on Tadawul website on 31/05/2023 regarding the resolutions of FIPCO’s Board of Directors which was related to transforming the legal entity of its subsidiary (FPC) from a limited liability company to joint stock company, and to increase its capital.