What's Happening?
The Almasane Alkobra Mining Company (AMAK) has announced a proposal to increase its capital through a rights issue valued at 680 million Saudi riyals ($181.32 million). This initiative is aimed at supporting the company's expansion and investment in its growth portfolio. The rights issue is subject to approval by the relevant authorities and the extraordinary general assembly. Al Rajhi Capital has been appointed as the financial advisor for this offering. The company plans to submit the capital increase request to the Capital Market Authority for approval. Previously, in December 2025, AMAK entered into an agreement with the Saudi Arabian Mining Company (Maaden) to exchange exploration licenses, enhancing operational efficiencies and investment objectives.
Additionally, AMAK has reported the discovery of potentially valuable copper, zinc, gold, and silver resources in the Najran region.
Why It's Important?
This capital increase is significant for AMAK as it seeks to bolster its expansion efforts in the mining sector. The proposed rights issue reflects the company's strategic focus on growth and resource development, which could enhance its competitive position in the industry. The involvement of Al Rajhi Capital as a financial advisor underscores the financial community's interest in AMAK's growth prospects. The successful execution of this rights issue could lead to increased investment in exploration and development activities, potentially boosting the company's resource base and production capabilities. This move is also indicative of the broader trend of investment in the mining sector within Saudi Arabia, aligning with the country's economic diversification goals.
