Anaam International Holding Group's shareholders approved yesterday the board's recommendation on cutting capital by 92.35% from SAR 196 million to SAR 15 million to offset SAR 181 million worth of accumulated losses, the company said in a bourse statement.
These accumulated losses were driven by the IFRS implementation and the allocation of Zakat provisions.
Thus, the number of shares will be cut from 19.6 million to 1.5 million by cancelling 18.1 million shares, or 92.35 for every 100 outstanding shares.
There is no relevant financial impact, the statement added.
In a separate statement, the Saudi Stock Exchange (Tadawul) said Anaam's fluctuation limit for its capital decrease will be based on a share price of SAR 166.
A trading halt will be placed on the company's shares for two business days, until shares are deposited in investors’ portfolios.
In December, the Capital Market Authority (CMA) approved Anaam's request to reduce its capital from SAR 196 million to SAR 15 million.