Logo ofAl-Jouf Agricultural Development Co.
Under the agreement, the company will increase its capital to SAR 345 million from SAR 300 million. The increase will be carried out through a private placement with preemptive rights suspended, involving the issuance of 4.5 million new ordinary shares. 
The new shares will represent 15% of the company’s current share capital and will have a nominal value of SAR 10 per share.
In a statement to Tadawul, the company said Almunajem will fully subscribe to the new shares at a subscription price of SAR 52.5 per share, for a total subscription amount of SAR 236.25 million.
The subscription is subject to approvals from the Capital Market Authority (CMA) and the Saudi Exchange (Tadawul).
Al-Jouf Agricultural said it will submit the required applications to the CMA and other relevant authorities to obtain the necessary approvals, after which it will convene an extraordinary general meeting (EGM) to vote on the transaction.
The capital increase remains subject to several conditions, including approvals from the CMA and Tadawul, the company’s internal approvals.
It is also subject to shareholders’ approval of the share issuance and allocation to Almunajem, as well as an amendment to the company’s bylaws to reduce the number of board members to six from seven.
The transaction also requires Almunajem’s internal approvals.
The company noted that Almunajem is a related party, as it is a major shareholder in Al-Jouf Agricultural.
According to data available with Argaam, the boards of Al-Jouf Agricultural and Almunajem Foods approved the signing of the binding subscription agreement on July 26.
In February, Al-Jouf Agricultural’s board approved entering into preliminary, non-binding discussions regarding the potential entry of Almunajem as a strategic investor in the company.
Key investment transaction details
Issuer
Al-Jouf Agricultural Development Co.
Subscriber
Almunajem Foods Co.
Transaction Type
Subscription agreement for a capital increase through a private placement with preemptive rights suspended
Current Capital
SAR 300 mIn
New Capital
SAR 345 mIn
Capital Increase
SAR 45 mIn
Capital Increase Ratio
15%
New No. of Shares
4.4 mIn shares
Par Value per Share
SAR 10
Subscription Price per Share
SAR 52.5
Total Subscription Amount
SAR 236.25 mIn
Subscription Mechanism
Almunajem to fully subscribe to the new shares
Required Approvals
Capital Market Authority (CMA) and the Saudi Exchange (Tadawul)
Logo ofAl-Jouf Agricultural Development Co.
Under the agreement, the company will increase its capital to SAR 345 million from SAR 300 million. The increase will be carried out through a private placement with preemptive rights suspended, involving the issuance of 4.5 million new ordinary shares.
The new shares will represent 15% of the company’s current share capital and will have a nominal value of SAR 10 per share.
In a statement to Tadawul, the company said Almunajem will fully subscribe to the new shares at a subscription price of SAR 52.5 per share, for a total subscription amount of SAR 236.25 million.
The subscription is subject to approvals from the Capital Market Authority (CMA) and the Saudi Exchange (Tadawul).
Al-Jouf Agricultural said it will submit the required applications to the CMA and other relevant authorities to obtain the necessary approvals, after which it will convene an extraordinary general meeting (EGM) to vote on the transaction.
The capital increase remains subject to several conditions, including approvals from the CMA and Tadawul, the company’s internal approvals.
It is also subject to shareholders’ approval of the share issuance and allocation to Almunajem, as well as an amendment to the company’s bylaws to reduce the number of board members to six from seven.
The transaction also requires Almunajem’s internal approvals.
The company noted that Almunajem is a related party, as it is a major shareholder in Al-Jouf Agricultural.
According to data available with Argaam, the boards of Al-Jouf Agricultural and Almunajem Foods approved the signing of the binding subscription agreement on July 26.
In February, Al-Jouf Agricultural’s board approved entering into preliminary, non-binding discussions regarding the potential entry of Almunajem as a strategic investor in the company.
Key investment transaction details
Issuer
Al-Jouf Agricultural Development Co.
Subscriber
Almunajem Foods Co.
Transaction Type
Subscription agreement for a capital increase through a private placement with preemptive rights suspended
Current Capital
SAR 300 mIn
New Capital
SAR 345 mIn
Capital Increase
SAR 45 mIn
Capital Increase Ratio
15%
New No. of Shares
4.4 mIn shares
Par Value per Share
SAR 10
Subscription Price per Share
SAR 52.5
Total Subscription Amount
SAR 236.25 mIn
Subscription Mechanism
Almunajem to fully subscribe to the new shares
Required Approvals
Capital Market Authority (CMA) and the Saudi Exchange (Tadawul)
