‎MEPCO to redirect SAR 291M in share issue proceeds to PM5 project

‎<p><img src="https://argaamplus.s3.amazonaws.com/cd5666c4-c59f-4815-b24f-2d1ec32f5a64.png" ></p> <p class="ckeCaption" >The PM5 project is designed to produce containerboard paper.</p> <hr> <p >Middle East Paper Co. (<a href="https://www.argaam.com/en/tadawul/tasi/mepco" target="_blank">MEPCO</a>) 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.</p> <p ></p> <p >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 <strong>Tadawul </strong>today.</p> <p ></p> <p >According to data compiled by <span ><strong>Argaam</strong></span>, 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.</p> <p ></p> <p >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.</p>

Publication

Argaam - Company Disclosures · Stock Exchange/Regulatory Announcements

Published

16th September 2026

Original report

argaam.com

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