DUBAI: The Saudi markets regulator has approved the proposed rights issue of jeweler L’azurde.
The Capital Market Authority (CMA) approved the plan to increase its share capital by some SR145 million ($38.6 million), the Riyadh-based company said in a stock exchange filing on Wednesday.
“The reason for a capital increase is to support future expansion activities and provide working capital to increase operational capacity and to reduce debt to equity ratio,” L’azurde said in the filing.
The coronavirus pandemic has rocked the global jewelry sector as many bricks and mortar retailers were forced to close while in some countries, weddings and other celebrations were also put on hold which in turn hit sales of gold and diamonds.
L’azurde is the region’s largest gold and jewelry designer, manufacturer, and fourth-largest jewelry manufacturer worldwide, according to its website.