‎FIPCO’s board approves FPC transformation to joint stock company, raises capital to SAR 70 mln

‎FIPCO’s board approves FPC transformation to joint stock company, raises capital to SAR 70 mln

Filling and Packing Materials Manufacturing Co.’s (FIPCO) board of directors approved by circulation, on May 30, to transform the legal entity of FPC - in which FIPCO owns 100% of its paid-up capital of SAR 18 million - from a limited liability company to a joint stock company.

The board also decided to set an authorized capital of SAR 100 million and raise the paid-up capital from SAR 18 million to SAR 70 million. The capital hike will be financed through using some of the current account balances between partners.

This transformation will support FPC’s objectives aiming to future expansions, maintain its stability and sustainability, and will support the company’s financial position, which supports increasing export sales and improves the credit relationship with some large foreign clients in order to increase export share and in line with the needs of global markets, FIPCO said in a statement on Tadawul.

This update will not have a material impact on the company's financial results, while the financial impact of the capital structure will appear on financial statements as of Q2 or Q3 2023, depending on the company's ability to complete the relevant regulatory procedures with governmental authorities.

FIPCO will continue to take all measures that contribute