Seera submits capital reduction request to CMA

Reduction will be limited to treasury shares: Seera

Seera Group Holding Co. submitted its application for a capital reduction to the Capital Market Authority (CMA).

In a statement to Tadawul, the group said the reduction will apply only to the company’s treasury shares and will not affect shares owned by other shareholders.

It added that the capital reduction is subject to the approval of the relevant regulatory authorities and the company’s shareholders.

The group affirmed that it will disclose any material developments.

According to data available with Argaam, the board recommended in June reducing the group’s capital by 8.65%, from SAR 3 billion to SAR 2.74 billion, as the current capital exceeds the company’s needs.

As many as 25.95 million ordinary treasury shares will be cancelled, including 2.03 million ordinary shares allocated to the employee share program.

The company’s treasury shares currently represent 8.8% of its total shares. If the proposed capital reduction is approved, treasury shares will comprise 0.18% of the company’s total shares following the reduction.