Wafrah gets CMA's nod on capital cut

The Capital Market Authority (CMA) approved the request of Wafrah for Industry & Development Co. (Wafrah) to cut capital from SAR 200 million to SAR 77.17 million.

Thus, the number of shares will be cut from 20 million to 7.7 million.

The approval is subject to the company’s extraordinary general assembly, in addition to finalizing the necessary relevant procedures.

The company will publish a disclosure document to its shareholders related to the proposed method of capital reduction.

Wafrah’s board of directors recommended a 61.4% capital cut to SAR 77.17 million from SAR 200 million, Argaam reported earlier. The step is intended to offset accumulated losses of SAR 122.83 million as of Dec. 31, 2019.