Riyadh – Mubasher: The shareholders of Tourism Enterprises Company (Shams) agreed to increase its capital to SAR 578.23 million from SAR 52.56 million, according to a bourse filing.
Shams will offer a rights issue worth SAR 525.66 million at a nominal price of SAR 10 per share. Meanwhile, the number of shares after the raise transaction will stand at 57.82 million shares, higher by 52.56 million than 5.25 million shares.
The board of Shams recommended the 1000% capital hike to reinforce the company’s working capital, boost its financial solvency, and rehabilitate the current resort in the Eastern region.
Furthermore, the Tadawul-listed firm will use the proceeds of the increase to delve into investments in the tourism sector within the framework of the Saudi Vision 2030.
The shareholders granted their approval for the capital hike during the extraordinary general meeting (EGM) that was held on 20 November 2022.
Last October, the Capital Market Authority (CMA) greenlighted the company’s capital raise.
