CMA nods to Chemanol’s 77.8% planned capital cut

Logo of Methanol Chemicals Co. (Chemanol)

The Capital Market Authority (CMA) announced its approval of Methanol Chemicals Co.’s (Chemanol) planned capital reduction from SAR 674.51 million to SAR 150 million.

Consequently, the number of shares will be cut from 67.45 million to 15 million.

The approval is conditional on the extraordinary general meeting's (EGM) nod and completion of the necessary regulatory procedures.

Chemanol will publish a disclosure document to its shareholders related to the proposed method of capital reduction and the expected effects within sufficient time prior to the EGM to enable shareholders to vote on the capital decrease.

The CMA said its approval of the capital reduction should never be viewed as an endorsement of the feasibility of the capital decrease, as it merely means that the regulatory requirements as per the Capital Market Law and its executive regulations have been met.​​

According to Argaam’s data, Chemanol’s board of directors recommended, in October 2025, a 77.8% capital cut to SAR 150 million from SAR 674.5 million, to restructure capital and offset accumulated losses.