Saudi regulator clears Saudi Cable's SAR 400 million rights issue

Saudi Arabia's Capital Market Authority approved a SAR 400 million rights issue by Saudi Cable Company on 10 November, the regulator said, clearing the way for a shareholder vote on the issue.

The next step is a vote by shareholders. The board will set the date of the extraordinary general assembly later, and only shareholders registered with the Securities Depository Center at the close of the second trading day after that meeting can take up the rights, the CMA said. The company will fix the offer price and the number of new shares after the market closes on the day of the meeting, and the prospectus will be published later.

Saudi Cable filed its application with the CMA on 28 July 2025, more than 15 months before the approval, Argaam reported at the time, after its board recommended in May 2024 raising capital from SAR 66.73 million to SAR 466.7 million through the issue. The company said the money would go to working capital, operating capacity and its business activities, in line with a proposed financial restructuring plan.

The terms have changed since. In March 2026 the board raised the planned offer price to SAR 32 a share from SAR 10 and cut the shares on offer to 12.5 million from 40 million, keeping the total at SAR 400 million, Argaam reported. Of the SAR 32, SAR 10 is nominal value and SAR 22 is share premium. The CMA's notice leaves the final price and share count to the day of the meeting.

A day later the regulator approved Keir International Company's request to reduce its capital to SAR 33.58 million from SAR 120 million, with the share count falling to 33,577,847 from 120 million, the CMA said. That removes about 72 per cent of the shares. The approval depends on a vote at Keir's extraordinary general assembly and on completing the procedures the regulations require, and the company must publish a disclosure document on the method of the reduction and its expected effect in sufficient time before that meeting. The CMA's notice gives no reason for the reduction.

Saudi Cable's approval follows the pattern of the SAR 680 million rights issue the CMA cleared for Almasane Alkobra Mining on 5 October: the regulator signs off first, and the shareholder meeting fixes the timetable and the price. The same week the CMA also said Musharaka Alsafaqat Lilistithmar Company had completed the requirements to start advising on securities, under a licence granted on 4 June 2025. The CMA's final rules on IPO practices, approved on 2 November, apply to initial public offerings.

For Saudi Cable's shareholders, the board's notice of the meeting is now the document that sets the timetable, because the record date for the rights falls at the close of the second trading day after the vote.