The PM5 project is designed to produce containerboard paper.
Middle East Paper Co. (MEPCO) said its shareholders approved reallocating SAR 291.1 million from the net proceeds of the share issuance with the suspension of pre-emptive rights, previously earmarked for acquiring existing corrugated carton box manufacturing facilities, to the Paper Machine 5 (PM5) project for containerboard production. 
Shareholders also approved additional fees of SAR 487,500 for Ernst Young for additional audit work related to the 2025 annual financial statements, according to a statement to Tadawul today.
According to data compiled by Argaam, MEPCO’s board recommended in August reallocating part of the net issuance proceeds. The company said the proposal aims to optimize the use of proceeds and prioritize projects ready for implementation amid a lack of immediate acquisition opportunities, while continuing to explore potential acquisitions.
In December 2023, MEPCO shareholders approved a 30% capital increase to SAR 866.67 million through the issuance of 20 million new ordinary shares with the suspension of pre-emptive rights. The issuance generated total subscription proceeds of approximately SAR 630 million and was fully subscribed by the Public Investment Fund (PIF), raising its ownership stake to 23.08% of the company’s capital.
The PM5 project is designed to produce containerboard paper.
Middle East Paper Co. (MEPCO) said its shareholders approved reallocating SAR 291.1 million from the net proceeds of the share issuance with the suspension of pre-emptive rights, previously earmarked for acquiring existing corrugated carton box manufacturing facilities, to the Paper Machine 5 (PM5) project for containerboard production.
Shareholders also approved additional fees of SAR 487,500 for Ernst Young for additional audit work related to the 2025 annual financial statements, according to a statement to Tadawul today.
According to data compiled by Argaam, MEPCO’s board recommended in August reallocating part of the net issuance proceeds. The company said the proposal aims to optimize the use of proceeds and prioritize projects ready for implementation amid a lack of immediate acquisition opportunities, while continuing to explore potential acquisitions.
In December 2023, MEPCO shareholders approved a 30% capital increase to SAR 866.67 million through the issuance of 20 million new ordinary shares with the suspension of pre-emptive rights. The issuance generated total subscription proceeds of approximately SAR 630 million and was fully subscribed by the Public Investment Fund (PIF), raising its ownership stake to 23.08% of the company’s capital.
