SVCP revises capital cut plan as accumulated losses rise

Logo of Saudi Vitrified Clay Pipes Co. (SVCP)

Saudi Vitrified Clay Pipes Co. (SVCP) board of directors decided on Aug. 13 to amend its recommendation to reduce the company’s capital and subsequently increase it through a rights issue.

According to a statement on Tadawul, the amendment followed a rise in total accumulated losses reported in the preliminary financial results for the period ended June 30, 2026.

SVCP said the capital reduction will have no material impact on the company’s liabilities, operations, or financial, operational, or regulatory performance.

It will retain its previous recommendation to raise its capital by SAR 90 million through a rights issue, with no changes.

The capital increase aims to strengthen the company’s financial position and provide the necessary funding to implement its operational and strategic plan.

Subscription eligibility will be granted to shareholders who own shares on the date of the EGM that approves the capital increase through a rights issue and are registered in the company’s shareholder registry at Edaa at the end of the second trading day following the EGM date.

The capital increase is subject to the approval of the relevant regulatory authorities and the EGM, the company noted.

SVCP added that it will announce any material developments related to the matter in due course, in accordance with the relevant regulatory requirements.

It will also disclose when it submits the capital reduction application and the capital increase application to the Capital Market Authority (CMA) for approval.

According to data available on Argaam, SVCP’s board of directors recommended in July reducing the company’s capital from SAR 150 million to SAR 64.72 million, or 56.86%, to restructure its capital and write off accumulated losses.

Accumulated losses stood at SAR 104.57 million at the end of H1 2026, representing 69.71% of the company’s capital.