Page 7 - DMEA Week 38 2022

DMEA COMPANIES DMEA

East Pipes invites shareholders

to vote on capital increase

MIDDLE EAST SAUDI Arabia’s East Pipes Integrated Co. for
Industry, a manufacturer of steel pipes for oil,
gas and water transportation, said on September
19 that it had invited its shareholders to vote on a
proposed capital increase.
In a series of stock exchange statements, East
Pipes explained that the vote would be held dur-
ing an extraordinary general meeting (EGM) of
shareholders on October 19. At the meeting,
which will be conducted virtually, shareholders
will vote on a measure that aims to raise the total
number of shares in the company from 21mn
to 31.5mn.
Under this measure, East Pipes’ existing East Pipes has a production capacity of 500,000 tonnes per year (Photo: East Pipes)
shareholders will be issued 0.5 new shares for
every one share now held through the capital- deliver on East Pipes’ current backlog, which is
isation of SAR105mn ($27.93mn) from the [a] testament of the positive momentum in our
company’s retained earnings. This will boost industry.”
East Pipes’ capital from SAR210mn ($55.85) to The Saudi company reported a profit of
SAR315mn ($83.78mn). SAR6.2mn ($1.65mn) in the second quarter of
The firm approved the plan to raise capital in 2022, up by 190% on the same period of 2021. It
August of this year, upon the recommendation has attributed the share year-on-year increase to
of the board of directors. At the time, it said it higher sales volumes.
was taking this step in order to “provide sustain- East Pipes, based in the city of Dammam,
able returns to shareholders, while supporting manufactures helical submerged arc-welded
the company’s strategic investment plans.” (HSAW) steel pipes. It has been in business since
Mohammed Al Shaheen, East Pipes’ CEO, 2010 and has a production capacity of 500,000
added: “We aim to retain internal resources to tonnes per year (tpy). ™

OQ reportedly chooses BoA, Bank Muscat

to assist with sale of gas pipeline unit

MIDDLE EAST OQ, the state energy investment company of
Oman, has reportedly chosen US-based Bank of
America (BoA) and a local lender, Bank Muscat,
to provide assistance with the upcoming listing
of its natural gas pipeline unit.
Sources familiar with the matter told
Bloomberg last week that the banks would serve
as sources of support for OQ during the gas
pipeline concern’s initial public offering (IPO).
They also said the state-owned company was
looking into the possibility of listing the shares The gas pipeline unit’s shares may be listed in Muscat and Riyadh (Photo: OQ)
involved in the IPO on two stock exchanges –
namely, the Muscat Securities Market (MSX) not yet been finalised. OQ may select additional
and the Saudi Stock Exchange (Tadawul). banks to serve as advisors and consider listings
The sources, who spoke on condition of ano- on other exchanges as it continues to discuss the
nymity, stressed that the details of the IPO had exact size and timing of the sale, they said.

Week 38 22•September•2022 www. NEWSBASE .com P7