Logo of Saudi Industrial Export Co.
Saudi Industrial Export Co.’s (SIECO) board of directors amended its previous proposal of a capital increase via a rights issue to a capital cut, to be followed with a capital increase, according to a bourse filing.
The board of directors proposed to slash capital by 66.66%, or two shares for every three outstanding shares, from SAR 64.80 million to SAR 21.6 million, as follows:
|
Capital Cut Details |
|
|
Current Capital |
SAR 64.80 mln |
|
Number of Shares |
6.48 mln |
|
Percentage |
66.66% (two-for-every three outstanding shares) |
|
New Capital |
SAR 21.60 mln |
|
New Share Capital |
2.16 mln |
|
Method |
Cancelling 4.32 mln shares |
|
Reason |
To offset accumulated loss at SAR 43.2 mln |
SIECO’s board of directors also proposed to increase capital, from SAR 21.6 million to SAR 194.4 million via a rights issue, as follows
|
Capital Hike Details |
|
|
Capital after Reduction |
SAR 21.6 mln |
|
Share Capital after Reduction |
2.16 mln |
|
Percentage |
800% (eight-for-every one outstanding share) |
|
New Capital |
SAR 194.4 mln |
|
New Share Capital |
19.44 mln |
|
Method |
Right issue worth SAR 172.8 mln |
|
Reason |
To boost solvency and strategic expansions |
SIECO attributed the proposal amendment to the deadline, which will end on March 4, 2022, for the listed companies to suspend some of the new Companies Law provisions. In addition, the Capital Market Authority (CMA) has not yet decided on the company's request to increase capital, which was submitted on Dec. 31, 2020.
The relevant updates will be duly revealed, the statement added.
SIECO’s board of directors recommended, on Nov. 9, 2020, increasing capital via a SAR 129.6 million rights issue, Argaam reported.
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