Molan adopts revised plan to address accumulated losses, financial restructuring

Logo of Molan Steel Co.

Molan Steel Co. approved yesterday, Oct. 4, a revised plan to address its accumulated losses and financial restructuring, replacing the previously announced plan.

The updated plan aims to offset accumulated losses, increase capital, and address the decline in the company’s per-share par value below SAR 1. It will be submitted to the extraordinary general meeting (EGM) for approval, according to a statement to Tadawul today, Oct. 5.

Molan said accumulated losses reached SAR 37.58 million, or 141.26% of its SAR 26.6 million capital, per the condensed interim financial statements for H1 2026.

The revised plan is made up of six phases:

The company said each stage requiring EGM approval will be presented for a go-ahead at the relevant time. Implementation will be subject to CMA approval and completion of regulatory requirements, with the company to announce each stage in due course.

According to Argaam data, Molan received a notice in August that its average closing share price had fallen below the minimum threshold, with a three-month period to take corrective measures starting Aug. 3, in accordance with the CMA’s listing rules.

The company said at the time that the measures would include a share consolidation to bring the closing share price to at least SAR 3 and convening an EGM to vote on the board’s recommendation to consolidate the shares, unless the closing share price rose to SAR 3 or above during the period.