K&A acted as the financial adviser, lead manager and underwriters counsel for Riyad Capital, SNB Capital Company and Al Rajhi Capital in relation to the National Agricultural Development Co. (NADEC) capital increase by way of a rights issue for a total amount of SAR 2 billion. The company’s capital will be raised by 196.8% to SAR 3.016 billion, through offering 200 million shares at an offer price of SAR 10 each, and was met with substantial demand from institutional investors during the rump offering exceeding 540%.
With this capital increase, NADEC's objective is to bolster its financial stability, enabling the execution of its strategic and operational plans. This move also aims to support its future endeavors to fortify its presence in local and regional food markets, and aligns with the Kingdom's strategic focus on food security, ensuring robust supply chains, an abundance of foodstuffs, and stable local market prices.
The transaction was led by managing partner Zeyad Khoshaim and senior associates Ghaida Meaigel, supported by counsel Khalid Al Yafi and associate Saud Aldriss
This achievement adds to K&A's recent string of successes at the IFLR Middle East Awards 2023, which includes being named "Saudi Arabian Law Firm of the Year" and receiving other awards such as "Project Finance Deal of the Year" and the "Equity Deal of the Year." These acknowledgments underscore K&A's strength in equity capital markets practices.