Rozen Arabia  specializing in the production of tissue paper (MaxiRoll), plastic materials, and cleaning products, has confirmed the completion of its transition into a closed joint-stock company. The company also indicated that its nominal capital was increased from 7.5 million riyals to 9.75 million riyals, or from 750,000 shares to 975,000 shares, an increase of 225,000 shares. As a result, one share was granted for every five existing shares, and this bonus is available to shareholders registered as of the date of the extraordinary general meeting on September 18, 2022. During this meeting, the general assembly decided to introduce new investors through crowdfunding, and the bonus shares will be distributed to the founders and new shareholders who subscribed during the offering through the Alawwal Capital platform.

The company management noted that the founders decided to absorb the fractional shares so that shareholders owning less than five shares would receive one share. This decision followed discussions between the company, Alawwal Capital, and Ebana, demonstrating all parties’ commitment to protecting shareholders’ rights.

According to the Ministry of Commerce, the advantages of transforming into a closed joint-stock company include enhanced oversight, governance, disclosure, and transparency in transactions. It also provides the company with more flexibility in decision-making and boosts stakeholder confidence, in addition to the institutional work benefits that ensure the company’s sustainability and generational transfer.

It is worth mentioning that Rosen had previously offered its shares for subscription through the Alawwal Capital platform for equity crowdfunding last May. Rosen Arabia aims to reach its full production capacity of approximately 5,000 tons and achieve profitability for the company owners and shareholders of more than 12 million riyals after 2023, with sales exceeding 100 million riyals. The company also plans to increase and double its future capacity to reach approximately 15,000 tons annually.

Rozen Arabia was established in 2014 as a trading company engaged in consumer goods activities and trading. Its vision became clear after gaining experience that the market needed specialization in producing certain consumer products in demand. Consequently, it chose to specialize in the production and manufacturing of high-demand tissue paper (MaxiRoll) in most consumption areas. The company also has a commercial arm for the sale and marketing of some other consumer and plastic products.