Dalipal Sells 40% of Saudi Subsidiary and Commits Up to USD144 Million to Dammam Expansion

Dalipal Holdings Limited ( (HK:1921) ) has shared an update.

Dalipal Holdings Limited has agreed to sell a 40% stake in its Saudi Arabian subsidiary, Dalipal International, to independent third party Zumar for SAR3.0 million, reducing its holding in the unit to 60% as it advances a major project in Dammam. Under a new shareholders’ agreement, Dalipal and Zumar plan to increase Dalipal International’s share capital to between USD150 million and USD240 million, with Dalipal contributing up to USD144 million, to help fund the first phase of a USD600 million project to build R&D and intelligent manufacturing facilities with a designed production capacity of 1.1 million tons per year, with the remaining financing to come from debt, shareholder loans or additional cash contributions; the deal is classified as a discloseable transaction under Hong Kong listing rules, underscoring the project’s materiality for the group’s Middle East expansion strategy.

The most recent analyst rating on (HK:1921) stock is a Sell with a HK$6.00 price target. To see the full list of analyst forecasts on Dalipal Holdings Limited stock, see the HK:1921 Stock Forecast page.

More about Dalipal Holdings Limited

Dalipal Holdings Limited, incorporated in the Cayman Islands and listed in Hong Kong, operates in the energy equipment and related services sector, with a growing strategic focus on the Middle East. The company is developing research and development and intelligent manufacturing capabilities in Dammam, Saudi Arabia, through its subsidiary Dalipal International, targeting large-scale production capacity for the regional energy market.

Average Trading Volume: 3,205,522

Technical Sentiment Signal: Strong Buy

Current Market Cap: HK$11.96B

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