Logo of Red Sea International Co.
Shareholders of Red Sea International Co. approved the board of directors’ recommendation to reduce capital by 49.61% from SAR 600 million to SAR 302.34 million, during the extraordinary general meeting (EGM) held on July 24.
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Capital Reduction Highlights |
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Current Capital |
SAR 600 mln |
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Number of Shares |
60 mln |
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Reduction (%) |
49.61% (1 share for every 2.016 shares held) |
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New Capital |
SAR 302.34 mln |
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New number of Shares |
30.23 mln |
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Method |
Writing off 29.77 million shares |
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Reason |
Restructuring the company’s capital to offset accumulated losses and support future plans. |
There is no financial impact on the company’s financial obligations, the company added.
In a separate statement, the Saudi Exchange (Tadawul) said Red Sea’s daily trading fluctuation limit after the capital reduction will be based on a share price of SAR 28.3. Accordingly, the outstanding orders will be canceled.
Red Sea shares will be placed in a trading halt for two business days as of today, July 25.
The Securities Depository Center (Edaa) will deposit the additional shares into investor portfolios by July 26, Tadawul added.
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