Saudi Arabia’s Capital Markets Authority (CMA) approved Red Sea International Company’s request to increase its capital by converting debt of up to SAR 476,023,821 into equity, subject to approval by the company’s extraordinary general assembly and completion of required regulatory procedures. A shareholders’ circular will be published explaining the reasons for and objectives of the capital increase in sufficient time before the extraordinary general assembly meeting. The CMA warned shareholders against voting without carefully reviewing the circular and recommended consulting an authorised financial adviser if its content is difficult to understand. The decision also reiterates that CMA approval does not endorse the feasibility of the transaction and only indicates that applicable requirements under the Capital Market Law and its Implementing Regulations have been met. If the extraordinary general assembly does not approve the capital increase within six months of the CMA’s approval, the CMA approval will be deemed cancelled.
Saudi Arabia Capital Markets Authority 2025-10-01
Saudi Arabia Capital Markets Authority approves Red Sea International Company capital increase via debt conversion up to SAR 476,023,821
The Saudi Arabia Capital Markets Authority (CMA) approved Red Sea International Company's plan to convert up to SAR 476,023,821 of debt into equity, pending approval from the company's extraordinary general assembly and regulatory procedures. A shareholders' circular will explain the capital increase, and the CMA advises shareholders to review it and consult a financial adviser if needed. The CMA clarified that its approval confirms compliance with the Capital Market Law and its Implementing Regulations.