Riyadh – Mubasher: The company’s board of directors recommended Hassan Ghazi Ibrahim Shaker During its meeting held today, Sunday, the company decided to reduce the company’s capital by 25% to restructure the company’s capital to extinguish the accumulated losses.
The company explained in a statement to “Saudi Tadawul” today, Sunday, that the board proposed a capital reduction of 157.5 million riyals by canceling 15.750 million shares of the company’s shares, to reduce 1 share for every 4 shares; Where the capital before the reduction reaches 630 million riyals, so the capital after the reduction is 472.500 million riyals.
She also indicated that the number of shares before the reduction was 63 million, while the number of shares after the reduction was 47.250 million.
She indicated that the reason behind the capital reduction is due to the restructuring of the company’s capital to extinguish the accumulated losses, indicating that there is no impact from the reduction of the company’s capital on its financial obligations, operations, financial, operational or organizational performance.
The company said that the date of capital reduction will be the end of the second trading day following the extraordinary general assembly in which it was decided to reduce the capital, noting that the recommendation to reduce the company’s capital is subject to the approval of the relevant regulatory authorities and the extraordinary general assembly.
The Board of Directors also decided at the same meeting to approve the appointment of Al-Jazira Capital Company as a financial advisor regarding capital reduction and capital increase, and an announcement will be made at the time when a request file for reducing and increasing the company’s capital is submitted to the Capital Market Authority for approval.
At the same meeting, the company’s board of directors recommended to the extraordinary general assembly, and after completing the capital reduction process, to increase the company’s capital through the offering of rights shares worth 250 million riyals.
She pointed out that the approval of the extraordinary general assembly on the process of increasing the company’s capital by issuing rights shares is conditional on the approval of the extraordinary general assembly on the proposed capital reduction.
The main objective of the company’s capital increase is to raise its financial solvency and reduce borrowing rates and costs incurred from them.
She explained that the eligibility to subscribe is for the shareholders who own the shares on the day of the extraordinary general assembly, which decided to increase the capital by offering rights shares, and whose names appear in the issuer’s shareholder register at the Securities Depository Center (Edaa) at the end of the second trading day following the date of the general assembly extraordinary, which will be scheduled at a later time.
She noted that the capital increase process is conditional on the approval of the relevant official authorities, including the Capital Market Authority, in addition to the extraordinary general assembly.
As mentioned above, Al Jazira Capital will be the financial advisor on the two operations of reducing and increasing the capital.