Red Sea International Co. Bolsters Financial Foundation Through Strategic Capital Increase
In a decisive move that demonstrates the strength of regional business cooperation, Red Sea International Co. has successfully concluded its Extraordinary General Assembly meeting, approving a comprehensive capital increase that will significantly enhance the company's financial position and operational capabilities.
The meeting, held at the company's Riyadh headquarters on November 12, 2025, witnessed an impressive 71.73% shareholder attendance, reflecting strong confidence in the company's strategic direction under the leadership of Chairman His Excellency Mr. Amr Abdullah Al-Dabbagh.
Strategic Debt Conversion Strengthens Balance Sheet
The assembly approved a series of transformative financial restructuring measures, including the conversion of outstanding debts into equity shares. This strategic approach demonstrates the company's commitment to sustainable growth and financial stability, principles that align with the broader regional economic development vision.
Key approved measures include the conversion of SAR 353,484,285 in outstanding debts owed to First Fix selling partners through the issuance of 13,390,876 ordinary shares, and additional debt conversions totaling over SAR 122 million to various creditors including Al-Dabbagh Group.
Significant Capital Expansion Approved
The comprehensive restructuring will result in a substantial 59.64% increase in capital, expanding from SAR 302,344,000 to SAR 482,673,830. This represents the issuance of 18,032,983 new shares, bringing the total share count from 30,234,400 to 48,267,383 shares.
The conversion factor of 26.4 Saudi Riyals per share, representing a premium of 16.4 Saudi Riyals above nominal value, reflects the strong market confidence in the company's prospects and the premium investors are willing to pay for participation in this growth story.
Leadership Excellence in Corporate Governance
The meeting showcased exemplary corporate governance with full board participation, including distinguished members such as Vice Chairman Mr. Sami Ahmed bin Mahfooz, Dr. Lama Abdulaziz Al-Sulaiman, and Chief Executive Officer Mr. Hani Bin Othman Baothman, among others.
The presence of committee chairmen, including audit, nomination and compensation, and safety sustainability committees, underscores the company's commitment to transparent and responsible business practices that serve as a model for regional corporate excellence.
This strategic financial restructuring positions Red Sea International Co. for enhanced growth and competitiveness, contributing to the broader economic development objectives that strengthen regional business capabilities and foster sustainable prosperity.