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Logo of Tourism Enterprise Co. (Shams)
Tourism Enterprise Co. (Shams) received, on July 19, a notice from the Saudi Tadawul Group indicating that the average closing price of its shares fell below the minimum price limit, according to a statement to Tadawul.
The deadline for the company to take corrective action begins today, July 20, and will last for three months in accordance with Article 33 (C) of the Listing Rules.
The corrective measures include merging shares to reach a closing price of no less than SAR 2 each, in addition to holding an extraordinary general meeting (EGM) to vote on the board's recommendation to merge the shares, unless the closing price per share rises to SAR 3 or more within this period. The action takes into account the share merger controls stipulated in the Companies Law's Executive Regulations for listed joint-stock companies to maintain the minimum closing price per share.
The company's shares will be merged, thereby reducing the total number of shares. The merger will reflect the new share value, with no change in the company's capital.
If the company fails to comply with the provisions stipulated in Article 33 of the Listing Rules, the procedures for halting trading of listed securities will apply. However, Tadawul will permit the over-the-counter trading of the company's shares.
Shams confirmed its commitment to implement the necessary steps to meet the minimum average closing price requirements.
Any material developments will be immediately disclosed, the statement added.
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