Saudi-based ASG Plastic Factory Company has announced that it has won approval from its board of directors to increase the capital of its wholly-owned subsidiary, ASK Pipes Company, to SAR15 million ($4 million) from SAR250,000 ($66586), registering nearly a sixty-fold rise.

This will be done through conversion of the balance owed to a related party (the owner) and capitalising a portion of retained earnings, said the company in its filing to Saudi bourse.

The increase is being achieved by capitalising the balance owed to the parent company, ASG Plastic Factory, by the subsidiary ASK Pipes Company, amounting to SAR14,645,394 as of December 31, 2025, and by capitalising SAR104,606 from retained earnings, bringing the total capitalized amount to SAR14,750,000, it stated.

This step aims to strengthen the financial position of the subsidiary and enable it to achieve its operational and strategic plans more efficiently in the future, it added.-TradeArabia News Service