Molan proposes reverse stock split, par value at SAR 10

On Sept. 3, Molan stock closed at SAR 0.85

Molan Steel Co. said its board of directors recommended on Aug. 27 increasing the company’s share par value to SAR 10 from SAR 1, in a reverse stock split that would reduce the number of shares to 2.66 million from 26.60 million.

The company said in a statement to Tadawul that the move will not result in any change to its capital, which will remain at SAR 26.60 million.

Molan added that it would complete the relevant regulatory requirements and procedures and announce any developments in due course.

In August, Molan received a notice that the average closing price of its shares had fallen below the minimum threshold and it had three months from Aug. 3 to ensure corrective measures, Argaam earlier reported.

Molan proposed a reverse stock split to achieve a closing share price of at least SAR 3.

The company also planned an extraordinary general meeting (EGM) to vote on the board’s recommendation—unless the share price closed at SAR 3 or above during this period.

On Sept. 3, the stock closed at SAR 0.85.

In May 2023, Molan’s board recommended splitting the par value of its shares to SAR 1 from SAR 10. The recommendation was approved by shareholders in August of the same year.