CMA approves Raydan’s 53.2% capital reduction

Logo of Raydan Food Co.

Saudi Arabia’s Capital Market Authority (CMA) greenlit Raydan Food Co.’s application for reducing capital from SAR 337.5 million to SAR 158.1 million.

The number of shares will be reduced from 33.75 million to 15.81 million, the market regulator said in a statement.

The reduction process is pending the approval of Raydan’s upcoming extraordinary general meeting (EGM) and completion of the necessary paperwork related to the applicable regulations.

The company will publish a disclosure document on the proposed capital reduction and the expected relevant impact within sufficient time prior to the EGM date to allow shareholders to vote on the capital decrease.

In August, Raydan’s board of directors recommended a 53.16% reduction of the company's capital from SAR 337.50 million to SAR 158.08 million, to amortize accumulated losses, Argaam reported.

On Sept. 6, Raydan named Yaqeen Capital as a financial advisor to manage the capital reduction, before submitting a request for the capital cut to the CMA on Sept. 8.