The Board of Directors of the Packaging Materials Manufacturing Company (FIPCO) has recommended increasing the company's capital by issuing rights shares in the amount of 115 million riyals.
The company said in a statement to the Saudi market (Tadawul), today, Wednesday, that the objective of the capital increase is to enable it and its subsidiaries to keep pace with the Fourth Industrial Revolution, one of the objectives of the vision Kingdom 2030, in industrial transformation programs aimed at raising the efficiency of Saudi factories.
She added that this was done by modernizing production lines to raise quality and operating efficiency, which would allow raising the company's market share, raising the export rate, and adding new products, which would give an additional diversity to the basket of FIPCO products. And automation of company operations and production lines, which increases production capacity and reduces dependence on labor.
Also by digitizing production lines in line with the Fourth Industrial Revolution, which increases production efficiency, and investing in sustainability initiatives, especially with regard to clean energy, which saves energy expenses .
In addition to raising the company's financial solvency to allow it to expand its sales, especially export sales, in addition to reducing borrowing rates and costs incurred from them, and providing sufficient working capital to meet The company's expansion activities.
The company clarified that the eligibility will be for the shareholders who own the shares on the day of the Extraordinary General Assembly, which will decide to increase the capital by offering rights shares and whose names appear in the issuer's shareholder register. At the Depository Center at the end of the second trading day following the date of the Assembly.
