Saudi Arabian Amiantit Co.’s (Amiantit) shareholders approved a 41.95% capital cut to SAR 200 million from SAR 344.52 million through the cancellation of 14.45 million shares to offset 96.61% of accumulated losses.
The approval came during the company’s extraordinary general meeting (EGM) held on Dec. 1, 2020.
|
Key Figures of the Capital Reduction |
|
|
Current Capital |
SAR 344.52 mln |
|
Number of shares |
34.45 mln shares |
|
Reduction (%) |
41.95% |
|
New Capital |
SAR 200 mln |
|
New number of shares |
20 mln shares |
|
Method |
Cancellation of 14.45 mln shares (face value of SAR 10 per share) |
|
Record date |
End of second trading day after the extraordinary general meeting date |
|
Driver |
To offset 96.61% of accumulated losses |
The capital cut is unlikely to have significant impact on the company’s financial liabilities, the company said in a statement to Tadawul.
Shareholders also approved a capital increase to SAR 320 million from SAR 200 million, through a SAR 120 million rights issue.
|
Key Figures of the Capital Hike |
|
|
Current Capital |
SAR 200 mln |
|
Number of shares |
20 mln shares |
|
Hike (%) |
60% |
|
New capital |
SAR 320 mln |
|
Number of shares after increase |
32 mln shares |
|
Method |
Through a SAR 120 mln rights issue (Face value of SAR 10 per share) |
|
Key Figures of the Rights Issue |
|
|
Number of rights issue shares |
12 mln shares |
|
Issue price |
SAR 10 |
|
Issue size |
SAR 120 mln |
|
Record date |
End of second trading day after the extraordinary general meeting date |
|
Use of proceeds |
Net proceeds will go for financing the working capital as well as repaying the dues of suppliers and banks. |
A trading halt will be placed on the stock as of Wednesday, Dec. 2, for two business days.
The trading suspension will be lifted by end of trading session tomorrow, Thursday, Dec. 3, and the daily trading fluctuation limit will be based on a share price of SAR 23.94. The rights will be deposited in shareholders’ portfolios on Sunday, Dec. 6, 2020.
Earlier this month, the Capital Market Authority (CMA) approved a request by Amiantit to reduce its capital to SAR 200 million from SAR 344.52 million, as well as a request to increase capital through a SAR 120 million rights issue.
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