Riyadh – Mubasher: Naseej International Trading Company announced the publication of its rights issue prospectus following approval from the Capital Market Authority (CMA) to increase its capital by SAR 163.45 million.
The capital hike, which represents a 150% increase from the company’s current capital level, is a strategic move designed to address accumulated losses that have exceeded 50% of the company's capital and to restructure its financial position.
The proposed capital increase will see the company’s share capital rise from SAR 108.97 million to SAR 272.43 million. This will be achieved through the issuance of 16.34 million new ordinary shares at an offer price of SAR 10 per share.
Existing shareholders will be granted 1.50 rights for every one share held. The execution of this capital restructuring remains subject to the approval of the Extraordinary General Assembly (EGM), which is scheduled to convene on 22 July 2026, at the company’s headquarters in Jeddah and via modern technology through the Tadawulaty system.
The prospectus outlines a detailed plan for the utilization of the SAR 151.90 million in net proceeds expected from the offering.
A significant portion of the funds, approximately SAR 83.70 million (51.20%), is earmarked for the repayment and settlement of outstanding bank loans.
As of 30 September 2025, the company reported total bank debt of SAR 127.90 million, held primarily with Riyad Bank, the Saudi National Bank (SNB), Al Rajhi Bank, and the National Development Fund.
Beyond debt reduction, Naseej intends to allocate SAR 35 million (21.40%) toward investments in the real estate sector and SAR 15 million (9.20%) for the development of labor housing facilities. The remaining funds will be used to pay suppliers and outstanding expenses (SAR 18.20 million) and cover the estimated SAR 11.50 million in offering costs.
Financial data included in the disclosure highlights the urgency of the capital injection. Naseej has faced declining revenues, which dropped from SAR 280.20 million in 2022 to SAR 196.70 million in 2024, with further contraction noted in the period ending September 2025.
Accumulated losses have escalated significantly, reaching SAR 69.7 million by late 2025, representing approximately 64% of the current capital. The company’s debt-to-equity ratio stood at 5.51 as of 30 September 2025, reflecting a strained balance sheet.
The offering is being managed by a consortium of financial advisors. Wasatah Capital is serving as the financial advisor and underwriter, while Musharaka Capital has been appointed as the lead manager. Khaleejion Consultants and Moore (Sayed El Ayouty & Co.) are providing legal and accounting advisory services, respectively.
The eligibility for the rights issue will be determined based on the shareholders registered in the company’s records at the Securities Depository Center (Edaa) at the end of the second trading day following the EGM.
The specific dates for the trading of rights and the subscription period for new shares will be announced following the assembly's approval.
