Molan outlines board plan to address accumulated losses

Logo of Molan Steel Products Co.

Molan Steel Products Co. announced today, June 25, the board of directors’ recommendations to address accumulated losses amounting to 99.21% of the company’s capital, according to a statement to Tadawul.

The approved board plan builds on measures already implemented by the company, including a cost restructuring program, operational efficiency enhancements, centralization of operations in Riyadh, rationalization of fixed expenses, improved inventory and working capital management, as well as the acquisition of Mayar International Co. (Cool Master) and expansion into higher-margin products and services.

As part of the plan, the board decided to call an extraordinary general meeting (EGM) no later than Oct. 25, 2026, to consider the company’s continuation and vote on a proposed capital increase from SAR 26.6 million to SAR 53.2 million through a rights issue, in compliance with the deadline stipulated under Article 132 of the Companies Law.

Following the completion and registration of the planned capital increase, the company intends to implement a capital cut to SAR 26.81 million by canceling 26.39 million shares to fully offset accumulated losses, subject to obtaining the required regulatory approvals, including approval from the Capital Market Authority (CMA), and shareholder approval at a future EGM.

The company said it will announce any material developments related to that matter in due course.

Molan has earlier announced that its accumulated losses reached SAR 26.39 million as of April 28, representing 99.21% of its SAR 26.6 million capital, according to Argaam’s data.