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Logo of Raydan Food Co.
Raydan Food Co.’s shareholders approved a 53.74% reduction in the company’s capital, lowering it to SAR 73.14 million from SAR 158.08 million, during an extraordinary general meeting (EGM) held on Nov. 2.
The move is intended to restructure capital and offset accumulated losses.
The company said in a statement to Tadawul that the reduction will not affect its financial obligations.
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Capital Reduction Details |
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Current Capital |
SAR 158.08 mln |
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Current No. of Shares |
15.81 mln |
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New Capital |
SAR 73.31 mln |
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New No. of Shares |
7.31 mln |
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Reduction (%) |
53.74% |
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Reason |
Restructuring the company’s capital to offset accumulated losses. |
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Date of Capital Reduction |
By the close of the second trading day following the 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. |
Tadawul said in a statement it will calculate the fluctuation limits for the company’s share based on a price of SAR 29.82, and will cancel existing orders.
It added that trading in the company’s share will be suspended for two business days starting Nov. 3, in line with the listing rules.
The Securities Depository Center Company (Edaa) will apply the share capital reduction in investors’ portfolios, and trading in Redan Food Co. shares will resume at the end of trading on Nov. 4.
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