Shareholders of Wafrah for Industry & Development Co. (Wafrah) approved on Wednesday, April 8, a 61.4% capital cut to SAR 77.17 million from SAR 200 million to offset accumulated losses.
The capital cut will be through writing off 12.28 million shares, the company said in a bourse statement.
There is no significant impact of the capital reduction on the company's liabilities, the statement added.
In March, Wafrah’s board recommended a 61.4% capital cut to offset accumulated losses of SAR 122.83 million as of Dec. 31, 2019.
|
Key Figures of the Capital Reduction |
|
|
Current Capital |
SAR 200 mln |
|
Number of shares |
20 mln shares |
|
Reduction (%) |
61.4% (1 for every 1.628 shares) |
|
New Capital |
SAR 77.17 mln |
|
New number of shares |
7.7 mln shares |
|
Method |
Writing off 12.28 mln shares |
|
Record date |
The second day following the general meeting (end of day) |
|
Purpose |
To offset accumulated losses of SAR 122.83 mln |
In a separate statement, the Saudi Stock Exchange (Tadawul) said Wafrah’s shares will be suspended for 2 business days, starting today, April 9, adding the fluctuation limit after capital reduction will be based on a share price of SAR 34.95.
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