Saudi Arabian Amiantit Co.’s board of directors recommended on June 11 capital hike through a SAR 120 million rights issue, instead of a previous recommendation on a SAR 300 million rights issue, the company said in a statement on Tadawul on Sunday.
The board also recommended a 41.95% capital reduction to offset accumulated losses ahead of the planned rights issue.
|
Key Figures of Capital Reduction |
|
|
Current Capital |
SAR 344.52 mln |
|
Number of shares |
34.45 mln shares |
|
Reduction (%) |
41.95% |
|
New Capital |
SAR 200 mln |
|
New number of shares |
20 mln shares |
|
Capital reduction method |
Writing off 14.45 mln shares (1 for every 2.38 shares held) |
|
Driver |
Offset accumulated losses of SAR 144.52 mln |
|
Reduction date |
The close of trading on the second day following the EGM date |
There is no significant impact of the capital reduction on the company's liabilities, Amiantit added.
The capital cut and hike processes are subject to approval of the extraordinary general meeting (EGM) and the regulatory authorities.
Wasatah Capital was named as financial advisor for the capital cut, Amiantit noted, adding that the capital cut and hike files will be submitted to the Capital Market Authority (CMA) for approval.
On Oct. 4, 2019, Amiantit’s board of directors proposed SAR 300 million right issue to raise the company’s capital, Argaam reported
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