Saudi Arabia’s Capital Market Authority (CMA) has approved a request by Saudi Arabian Mining Co. (Ma’aden) to increase its capital from SAR 38.03 billion to SAR 38.89 billion through the issuance of 85,977,547 ordinary shares.
The capital increase is intended to facilitate the acquisition of Alcoa Saudi Smelting Investments B.V.’s stake in Ma’aden Aluminium Co., as well as AWA Saudi Limited’s stake in Ma’aden Bauxite and Alumina Co. The share issuance will be made to acquire all outstanding shares held by these entities in the respective joint ventures.
A shareholder circular detailing the proposed capital increase and associated risks will be issued before an upcoming Extraordinary General Meeting. The CMA has advised shareholders to review the circular thoroughly before voting, noting that decisions made without a thorough understanding of the document may carry significant risk. Shareholders are encouraged to consult authorised financial advisors if needed.
The CMA clarified that its approval confirms only that Ma’aden’s request complies with the Capital Market Law and related regulations. It does not represent an assessment of the transaction’s feasibility or strategic merit.
The proposed acquisition aligns with Ma’aden’s ongoing strategy to consolidate ownership of its aluminium and bauxite operations. Alcoa previously held a minority stake in Ma’aden Aluminium through a joint venture structure established in 2009.
