SVCP shareholders reject SAR 80M rights issue

Saudi Vitrified Clay Pipes Co. (SVCP) shareholders rejected the board's recommendation to increase capital through a SAR 80 million rights issue at the extraordinary general meeting held Sunday.

The proposal would have raised the company's capital from SAR 120 million to SAR 200 million by issuing 8 million new shares at SAR 10 per share. Shareholders voted against the capital increase and also rejected amendments to the company's bylaws that would have aligned them with the new capital structure.

SVCP did not provide a reason for the rejection in its disclosure to the Saudi stock exchange. The company had said the rights issue was intended to strengthen its financial position and support future growth plans.

The stock closed at SAR 16.50 on Sunday, down 0.6% on the session.