Red Sea International Company has announced that its board of directors has recommended increasing the company’s share capital by SAR 280 million ($74.6 million) through a rights issue, representing 58% of its existing capital.
The move is aimed at strengthening the company’s financial position while supporting its long-term growth strategy.
Expansion and Financial Strength Objectives
The construction firm, majority owned by Al-Dabbagh Holding Group, stated that the proposed capital increase will help fund expansion plans, provide additional working capital, and support the financing and execution of future projects.
The initiative is also intended to enhance balance sheet resilience and improve the company’s ability to capitalise on new opportunities in the market.
Advisory and Approval Process
Alinma Capital has been appointed as the financial advisor for the planned rights offering.
The proposal remains subject to approvals from relevant regulatory authorities as well as shareholders during the Extraordinary General Assembly (EGM). Additionally, the capital increase will be subject to a six-month regulatory lock-up period from the date of issuance.
