Wafrah for Industry & Development Co.’s board of directors recommended a 61.4% capital cut to SAR 77.17 million from SAR 200 million, the company said in a statement on Tadawul.
The step is intended to offset accumulated losses of SAR 122.83 million as of Dec. 31, 2019.
The process won’t have a significant impact on the company’s liabilities.
The capital cut is pending approval from the general assembly and the Capital Market Authority.
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Key Figures of the Capital Reduction |
|
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Current Capital |
SAR 200 mln |
|
Number of shares |
20 mln shares |
|
Reduction (%) |
61.4% (1 for every 1.628 shares) |
|
New Capital |
SAR 77.2 mln |
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New number of shares |
7.7 mln shares |
|
Method |
Canceling 12.28 mln shares |
|
Record date |
The second day following the general meeting (end of day) |
|
Driver |
To offset accumulated losses of SAR 122.83 mln |
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