The Saudi Industrial Company (SIDC) has sought CMA approval to increase its capital from SR (400.000.000) to SR (784.300.000) for the purpose of acquisition of all assets and properties of Etab International Company, against issue of 38.430.000 new shares of SIDC shares, for the interest of Etab shareholders, for an amount of SR 11.25 a share. After study of the application in view of the legal requirements , quantitative and qualitative standards applicable to all companies that apply for increase of their capital, and since such capital increase is considered as an offer of  securities which is made under a prospectus that contravenes with the shareholders interest, and pursuant to the Capital Market Law which is promulgated by Royal Decree No. M/30 dated 2/6/1424, and the listing rules issued by the CMA Board by resolution No. 3-11-2004 dated 20/8/1425H, the CMA Board resolved disapproval of the prospectus, and consequently disapproved the above mentioned application made by SIDC.