On August 5, 2026, Middle East Paper Company (MEPCO) announced that its Board of Directors has recommended, on August 4, 2026, presenting a proposal to the next General Assembly to amend the use of net offering proceeds from its 2023 share issuance with suspension of preemptive rights, which raised a total subscription amount of SAR 629,999,968.50 through the issuance of 19,999,999 new ordinary shares. The proposed reallocation involves increasing the allocation for the Construction of the Containerboard Production Plant - Al Tadweer Al Akhdar Company (PM5) from SAR 174,806,124 to SAR 465,931,015.65, funded by redirecting the entire SAR 291,124,891.65 previously earmarked for acquisitions in the corrugated boxes sector, while the Production Expansion Project of Juthor Company - Tissue Mill (TM6) retains its allocation of SAR 153,978,495.76 unchanged. The reallocation, which would result in a deviation of 5% or more from the prospectus disclosure, is intended to prioritize near-term executable projects, reduce reliance on debt financing, and enhance capital efficiency without altering the total net offering proceeds or the company's broader M&A strategy. Implementation remains subject to General Assembly approval, with the meeting date and agenda to be announced in due course.

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Important Notice: The announcement information and market data in this report are sourced directly from the Saudi Exchange (Tadawul). This summary is generated by Sahm’s proprietary AI model for informational purposes only. While we strive for accuracy, it should not be construed as financial advice or an investment recommendation.