FILLING & PACKING MATERIAL. MFG. CO. (FIPCO) announces transforming the legal entity of its subsidiary (FPC) from a limited liability company to a joint stock company, and to increase its capital.
|Announcement Detail||Further to what has been disclosed on Tadawul website on 11/11/1444H. corresponding to 31/05/2023G regarding the resolutions of FIPCO’s Board of Directors which was related to transforming the legal entity of its subsidiary (FPC) from a limited liability company to joint stock company, and to increase its capital. |
FIPCO is pleased to announce for its shareholders that on Wednesday 03/04/1445H corresponding to 18/10/2023G, all relevant procedures with concerned governmental authorities have been finalized to officially transform FPC legal structure from a limited liability company to a closed joint stock company as well as increasing the Paid-up capital from SR 18 million to SR 70 million, accordingly the new bylaws has been issued and the commercial register has been updated.
FIPCO assures that This transformation will support FPC objectives aiming to future expansions, also it will 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 to increase the company’s export share and in line with the needs of global markets. Moreover, it gives it the necessary legal flexibility for any future transformations to come.
This update will not have a material impact on the company’s financial results, while the financial impact of the new capital structure will appear in the company’s financial statements as of the 4th quarter of the fiscal year 2023.
FIPCO will continue to take all measures that contribute to enhancing the company’s ability to involve in new investments with the aim of activating the maximum benefit from the operational activities integration between FIPCO and its subsidiary, improving the efficiency, taking into account the rights of all stakeholders, and focusing on areas that have significant growth opportunities, which will contribute to enhancing the company’s profitability and maximizing the value of shareholders’ investments on the long run.