Chemanol board resolves to raise statutory reserve balance to offset accumulated loss

In a statement on Tadawul, the company said it will restructure its capital to offset SAR 577.91 million of accumulated losses instead of SAR 535.55 million, through the cancellation of 52.45 million ordinary shares, representing a capital reduction of 77.8%, equivalent to canceling 0.7776 ordinary shares for every one ordinary share held.

An amount of nearly SAR 53.40 million from the statutory reserve (representing 59.9% of the total reserve) will be used to cover the remaining accumulated losses, instead of a previous recommendation to use SAR 11.04 million (which previously represented 12.4% of the total reserve).

The company confirmed that it will invite shareholders to attend an EGM to vote on the board’s recommendation after obtaining the required regulatory approvals, noting that it will disclose any material developments in due course.

Chemanol further stated that MEFIC Capital will remain the financial advisor of the capital cut process as it was appointed on Oct. 2, 2025.

The company added that it will announce when the capital reduction application is submitted to the Capital Market Authority (CMA), along with any other developments in line with CMA regulations.

According to data available on Argaam, Chemanol’s board recommended in October a 77.8% capital cut to SAR 150 million from SAR 674.5 million, to restructure capital and offset accumulated losses.