Molan EGM OKs 10-for-1 reverse stock split; trading suspended for 2 sessions

Logo of Molan Steel Co.

Molan Steel Co.’s extraordinary general assembly (EGM) approved the board’s recommendation to consolidate the company’s shares at a meeting held on Nov. 3, according to a Tadawul statement.

The step will increase the par value per share from SAR 1 to SAR 10 and cut the number of shares from 26.6 million to 2.66 million, with no change to the company’s capital.

The company said the share consolidation decision will apply to all shareholders holding shares on the date of the EGM and registered in the company’s shareholder register with the Securities Depository Center (Edaa) by the end of the second trading day following the EGM.

The decision's impact on the share price will take effect from the business day following the EGM, while the revised number of shares will be reflected in shareholders’ portfolios by the end of the second trading day following the EGM.

Shareholders also approved the accumulated losses address plan endorsed by the board, in accordance with Article 132 of the Companies Law, after the company’s accumulated losses reached SAR 37.58 million, representing 141.26% of its capital as of June 30, 2026.

Meanwhile, Tadawul announced that the share’s daily price fluctuation limits will be calculated based on a reference price of SAR 8.5 and all outstanding orders will be canceled.

Trading in the company’s shares will be suspended for two business days, starting today, Nov. 3, in accordance with the Listing Rules. Edaa will implement the share consolidation in investors’ portfolios, with trading in Molan shares set to resume at the end of the Nov. 4 session.

According to Argaam data, Molan received a notification last August that its average closing share price had fallen below the minimum required level.

The three-month period to take corrective action began on Aug. 3, 2026, under Article 33(c) of the Listing Rules.

The corrective measures to meet the minimum average closing price requirement include consolidating the shares to achieve a closing price of at least SAR 3 and convening an EGM to vote on the board’s recommendation, unless the share’s closing price rises to SAR 3 or above during the specified period.

Last October, Molan’s board approved an amended plan to address accumulated losses and restructure its finances, replacing a previously announced plan. The revised plan aims to eliminate accumulated losses, increase capital, address the share price falling below SAR 1, and submit relevant recommendations to the EGM.