| Element List | Explanation |
|---|---|
| Introduction | With reference to the announcement by Red Sea International Company (the "Company") on 16/03/2026 AD regarding the Board of Directors' recommendation to increase the Company’s share capital through a rights issue (“Rights Offering”), the Company’s management wishes to clarify and disclose the Strategic Objectives of the capital increase to its esteemed shareholders |
| Date of Posting the Previous Announcement of Development on Saudi Exchange’s Website | 2026-03-16 Corresponding to 1447-09-27 |
| Hyperlink to the Previous Announcement | Click Here |
| Change on the Development | The Company announces that the proceeds from the Rights Offering will be primarily utilized to settle all outstanding bank liabilities arising from the acquisition of Fundamental Installation for Electric Work ("First Fix"). By executing this step, the Company will hold its full stake in First Fix free of any financial obligations, granting it full flexibility to proceed with the subsidiary's listing procedures without cash flow pressures or outstanding liabilities. Furthermore, this increase will enhance the Company’s credit and borrowing capacity, thereby supporting the financing and implementation of its future projects, specifically in the construction and operation of residential complexes within the Oil & Gas sector. Additionally, this move will support the Company’s geographical expansion in constructing and operating residential complexes in the Makkah and Madinah regions. This aligns with the anticipated growth in demand for residential units, particularly in light of prospective regulatory trends regarding non-Saudi property ownership. |
| Financial Impact on the change | Not Applicable |
