CMA greenlights Thimar’s capital cut to SAR 65M

Logo of Thimar Development Holding Co.

Thimar Development Holding Co. announced today, April 25, the approval of the Capital Market Authority (CMA) on its request to cut capital from SAR 250 million to SAR 65 million, thus reducing the number of shares from 25 million to 6.5 million.

In a statement, the market regulator said its decision is conditional on the company's extraordinary general assembly (EGM) approval and completion of the necessary procedures related to the applicable regulations.

The CMA’s approval of the company’s request to reduce its capital should not be seen as an endorsement of the move’s feasibility. It merely means that the regulatory requirements were met in accordance with the Capital Market Law and its executive regulations.

In November 2023, Thimar's board of directors recommended a 74% capital cut from SAR 250 million to SAR 65 million, through writing off 18.5 million shares to restructure capital and offset accumulated loss, according to Argaam's data.

The board also recommended to later increase capital via a SAR 195 million rights issue.