Chemanol shareholders OK 77.8% capital cut

Shareholders of Chemanol approved a proposal to cut capital to SAR 150 mln from SAR 674.51 mln.

Shareholders of Methanol Chemicals Co. (Chemanol) approved the board of directors’ recommendation to reduce the company's capital to SAR 150 million from SAR 674.51 million.

This decision was made during an extraordinary general meeting (EGM) held 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 procedures.

Shareholders also agreed to transfer SAR 53.4 million from the statutory reserve to offset the remaining accumulated losses.

In addition, they approved 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. They authorized the board to take the necessary legal and regulatory actions in this regard.

Amending Article 4 of the company's bylaws, relating to its objectives, was also approved.

According to Tadawul, the stock's price fluctuation limits will be calculated based on a reference price of SAR 39.88.

Trading in the company's shares will remain suspended due to the company's failure to publish its financial statements.

The Securities Depository Center Co. (Edaa) will apply the capital reduction of Methanol Chemicals Co.'s shares to shareholders' investment portfolios on July 19.