The board of directors of Saudi Fisheries has proposed a rights issue to raise SR334.9m (US$89.3m) to support its strategic plans, having struggled with heavy losses in recent years.

The capital raise is subject to approval at an EGM and by the Saudi Capital Market Authority.

Shares closed down 5.3% on Monday at SR136.40, valuing the company at SR913.7m, with the rights issue representing a 36.7% capital increase.

For the nine months to the end of September the company reported revenue of SR17.6m, representing a 58.9% decline and resulting in a net loss of SR48.5m, slightly wider than SR47.1m in 2023.

The company blamed declines in sales on supply disruptions while losses were exacerbated by lower income from investment properties and higher consultancy costs.

An EGM in January approved a capital reduction of 83.3% to wipe out accumulated losses, leaving the company with nearly 6.7m shares outstanding.

As of September accumulated loses stood at SR333m while liabilities exceeded assets by nearly SR50.1m.

Source: IFR