Alhokair Group amends capital cut proposal to 51.54% to offset accumulated losses
Abdulmohsen Alhokair Group for Tourism and Development’s (Alhokair Group) board of directors, in its meeting held on Aug. 30, updated its previous proposal to reduce capital, according to a bourse filing.
The board recommended cutting capital by 51.54% from SAR 650 million to SAR 315 million, versus its earlier proposal of 46.15% reduction from SAR 650 million to SAR 350 million.
The recommendation aims to restructure the company’s capital to amortize 98.93% of accumulated losses as on June 30, 2022, the statement added.
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Capital Decrease Details |
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Current Capital |
SAR 650 mln |
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Number of Shares |
65 mln |
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Capital Decrease Percentage |
51.54% (through canceling 67 shares per each issued 130 shares). |
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Capital after Decrease |
SAR 315 mln |
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Number of Shares after Decrease |
31.5 mln |
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Reason |
Restructuring the company’s capital to amortize 98.93% of accumulated losses as on June 30, 2022. |
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Capital Reduction Method |
Canceling 33.5 million shares |
In June, the company’s board of directors recommended a capital decrease of 46.15% from SAR 650 million to SAR 350 million, according to Argaam.