Beirut (APD) - Jeddah-based Saudi Industrial Development Company (SIDC) intends to double its capital to SR 800 million ($213.32 million). The company would use the added capital for a number of industrial projects, mainly the expansion of its metals plant, the Riyadh-based business daily al-Iqtisadiya reported Tuesday.
"SIDC has submitted an application to the Saudi Capital Market Authority (CMA) for the authorization to increase its capital from SR 400 million to SR 800 million," Saleh Al Turki, chairman of SIDC, said Monday.
The company's annual general meeting (AGM) was scheduled for Monday but was postponed to May 22 for lack of quorum.
The proposed capital increase comes at a time when SIDC suffered a loss of SR 5.5 million in the first quarter of 2006 on top of a full-year loss of SR 23.5 million for 2005.
SIDC's showed positive results in 2004 and posted SR 1.98 million in full-year net profits compared with losses amounting to SR 7.56 million in 2003.
Established in 1992, SIDC is engaged in the development and promotion of industrial projects in the western part of Saudi Arabia. It fully owns a ceramic plant and is a major stakeholder in a metal coating company and a mattress manufacturing firm, along with a smaller stake in a petrochemicals company.
Following a recent stock split, SIDC's capital of currently SR 400 million is divided into 40 million shares, with a nominal value of SR 10 per share.
Shares in SIDC plunged by SR 2 or 8% to SR 23 in the Tuesday morning session on the Saudi Stock Exchange (Tadawul). [TS]
By Shikrallah Nakhoul, APD Staff Writer in Beirut
© APD (Arab Press Digest) 2006
