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Saudi Arabia’s Savola Group has received approval from the regulator to increase its capital by 6 billion riyals ($1.6 billion) via a rights issue.
The investment holding company, which deals in the food and retail sectors, said the rights issue will increase its capital from SAR 5.34 billion to SAR 11.34 billion, with the number of shares increasing by 600 million to 1.13 billion shares, according to a market filing.
The increase will be at an average of 1.1236 shares per owned share, at an offer price of SAR 10 apiece, adding that the Capital Market Authority (CMA) approval, dated 31 July 2024, is subject to the company’s Extraordinary General Assembly (EGM) and the completion of regulatory requirements.
The eligibility will be limited to shareholders who are registered with the Security Depository Center (Edaa) as of closing of the second trading day following the EGM.
(Writing by Bindu Rai, editing by Seban Scaria)