Raydan raises proposed capital cut to 80%

Raydan decides to expand its proposed capital reduction due to higher accumulated losses.

Raydan Food Co. said its board of directors decided today, Oct. 1, to amend its previous capital reduction recommendation, increasing the proposed reduction to 80% from 70%.

The board recommended reducing capital to SAR 14.63 million from SAR 73.14 million by lowering the nominal value of the shares.

According to a statement on Tadawul, The board also maintained its previous recommendation to increase capital through a SAR 105 million rights issue, with no changes.

The company said the amendment to the capital reduction recommendation came in light of the increase in total accumulated losses reported in its preliminary financial results for the period ended June 30.

Raydan’s board had previously recommended in May reducing capital by 70% to SAR 21.94 million from SAR 73.14 million by lowering the nominal value per share to SAR 3 from SAR 10, to restructure the company’s capital and offset accumulated losses.

In August, the company announced that its accumulated losses had reached SAR 78.3 million, representing 107% of its capital, based on its interim financial results for the period ended June 30, 2026.