Chemanol shareholders to vote on 77.8% capital cut on July 14

Chemanol shareholders to vote on 77.8% capital reduction to SAR 150 million to offset accumulated losses

Shareholders of Methanol Chemicals Co. (Chemanol) will vote on a board recommendation to reduce the company's capital by 77.8% to SAR 150 million from SAR 674.51 million at an extraordinary general meeting (EGM) on July 14.  

The company said in a statement to Tadawul that the capital reduction will have no impact on its liabilities or total shareholders’ equity. The reduction may result in fractional shares for some shareholders.

Under the proposed mechanism, if a shareholder owns four shares and their entitlement after the capital reduction is less than four shares, those shares will be cancelled and compensated in cash in accordance with the approved procedure.

Shareholders will also vote on transferring SAR 53.4 million from the statutory reserve to offset the remaining accumulated losses.

In addition, they will consider filing a liability lawsuit against members of the previous board (2021–2024) who held direct or indirect executive authority and were named in the criminal investigation report related to the two acquisition transactions disclosed by the company on Tadawul on Dec. 7, 2025.

The board will also seek authorization to take the necessary legal and regulatory actions in this regard.

Furthermore, shareholders will vote on amending Article 4 of the company's bylaws, relating to its objectives, by adding the following activities:

Chemanol’s accumulated losses amounted to SAR 577.9 million, representing 85.7% of its capital, at the end of the first nine months of 2025. The company has not yet announced its financial results for Q4 2025 and Q1 2026, according to Argaam data.