Tadawul-listed conglomerate Anaam International Holding Group is making its third attempt to secure shareholder approval for a SR236.3m (US$63m) rights issue.

Previous attempts at EGMs in February and March were met with lack of a quorum, with attendance of 11.8% and 12.4%, respectively.

The third EGM will be held at 6:30pm local time on Tuesday though a window for electronic voting opened on Friday until the end of the meeting.

According to a February prospectus the company intends to issue 472.5m new shares at SR0.50 each on a 0.75-for-1 ratio.

Around 42.3% of proceeds will be used to fund investment in projects in the packaging materials, car parts and food product sectors with 31.9% used to reduce borrowing costs.

The remainder will fund investment in warehousing and storage, the renewal of commercial properties and working capital.

Expenses of the rights issue are expected to be around SR15m.

Having initially specialised in food and agricultural logistics Anaam has become an investment firm with a portfolio covering healthcare, real estate, industrial investments and financial services.

It reported 2023 profit of SR10.8m and revenue of SR51.2m, reversing a loss of SR31.5m in 2022 on revenue of SR28.1m a year earlier. First-quarter 2024 profit was SR4.4m off revenue of SR11.5m.

Shares closed down 0.9% at SR1.10 on Monday but are up nearly 21% since the start of the year.

Wasatah Capital is advising and underwriting the offer with Al Nefaie Investment Group as lead manager.

The company tapped equity markets in 2022 with a SR210m rights issue to fund investment in real estate, healthcare and warehousing projects.

Source: IFR