AI Summary
Logo of Raydan Food Co.
Raydan Food Co.’s board of directors recommended a 53.74% capital cut to SAR 73.14 million from the current SAR 158.08 million to offset accumulated losses, according to a Tadawul statement.
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Capital Cut Details |
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Current Capital |
SAR 158.08 mln |
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Number of Shares |
15.81 mln |
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New Capital |
SAR 73.14 mln |
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New Number of Shares |
7.31 mln |
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Percentage of Decrease |
53.74% |
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Reason |
To restructure capital and offset accumulated losses |
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Date of Capital Reduction |
By the close of the second trading day following the extraordinary general meeting (EGM) that will decide on the capital cut |
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Method |
Writing off 8.5 mln shares at 0.53736 shares for every share held |
The board also proposed a subsequent increase in capital via a SAR 155 million rights issue.
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Capital Increase Details |
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Pre-Increase Capital |
SAR 73.14 mln |
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Pre-Increase Number of Shares |
7.31 mln |
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Post Increase Capital |
SAR 228.14 mln |
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Post Increase Number of Shares |
22.81 mln |
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Percentage of Increase |
211.93% |
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Reason |
To implement expansion, support working capital and enhance financial position |
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Record Date |
Shareholders registered with Edaa on the second trading day following the EGM, which will be determined later |
Raydan pointed out that the proposals are subject to approvals from the related authorities and company shareholders.
Albilad Capital was appointed as financial advisor on both the capital reduction and hike, as well as lead manager and underwriter on the rights issue.
Updates regarding the filing of the capital reduction and capital hike applications with the Capital Market Authority (CMA) will be announced in due course, the statement added.
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