Saudi Red Sea International Company has proposed a capital increase of 280 million riyals ($74.6 million) through a rights issue. The plan represents 58% of the company’s current capital and aims to strengthen its financial position.
The company intends the move to support expansion, provide additional working capital, and finance upcoming construction projects. The company, majority-owned by Al-Dabbagh Holding Group, seeks to ensure sustainable growth through this financial strategy.
Saudi Red Sea appointed Alinma Capital as the financial advisor for the rights offering. The advisory firm will guide the company in structuring and executing the issuance efficiently.
The board’s recommendation requires approvals from regulatory authorities and the Extraordinary General Assembly (EGM). Once authorized, the capital increase will be subject to a six-month regulatory lock-up period starting from the issuance date.
The rights issue is expected to provide Saudi Red Sea with the liquidity needed to undertake new construction projects and expand operations. This financial maneuver will also enable the company to enhance its balance sheet and meet future obligations.
Company executives said the capital increase aligns with their long-term vision to strengthen market competitiveness and ensure timely completion of planned projects. By leveraging the rights offering, the firm aims to improve shareholder value while maintaining operational flexibility.
The board highlighted that the rights issue provides current shareholders an opportunity to maintain proportional ownership and participate in the company’s growth journey. It also signals confidence in the company’s financial health and expansion strategy.
If approved, the capital increase will allow Saudi Red Sea to pursue strategic initiatives. Including infrastructure development, real estate projects, and other investment opportunities in line with its growth objectives.
The proposed issuance comes amid a supportive economic climate in Saudi Arabia’s real estate and construction sector, offering the company a favorable environment for raising capital.
