The move aims to restructure the company’s capital to offset SAR 170 million in accumulated losses, in line with the new Companies Law, the company said in a statement on Tadawul on Monday.
The capital cut is pending approval from the general assembly and official authorities.
All fractional shares resulting from the capital reduction will be sold, and proceeds distributed to eligible shareholders.
The Saudi Capital Market Authority (CMA) decided last year that listed companies with accumulated losses above 50 percent of capital, shall face liquidation unless they find a way to mend their financial position.
Capital Reduction Details
SAR 350 mln
Number of shares
35 mln shares
SAR 180 mln
New number of shares
18 mln shares
Cancellation of 17 mln shares
Restructure capital in line with new Companies Law