Shams EGM to vote on reverse stock split to SAR 10 on Oct. 16

Logo of Tourism Enterprise Co. (Shams)

Tourism Enterprise Co.'s (Shams) shareholders will vote on the board recommendation to adjust the stock’s par value from SAR 0.50 to SAR 10 per share, during the extraordinary general meeting (EGM) to be held on Oct. 16.

In a statement to Tadawul today, Sept. 22, the company confirmed that there will be no change to its capital before or after the planned reverse stock split.

If approved, the decision will apply to all shareholders of record on the EGM’s date and those registered with the Securities Depository Center (Edaa) by the close of trading on the second day following the meeting date.

The company added that the adjustment will reflect on the stock price starting from the next business day after the EGM, while the change in the number of shares in shareholders’ portfolios will apply on the second trading day following the meeting date.

The EGM will also vote on amending Article (7) of the company’s Articles of Association related to capital, as well as Article (8) related to share subscription.

According to available data on Argaam, Shams recently received a notice from Saudi Tadawul Group, saying that the average closing stock price fell below the minimum threshold.

The company clarified that the grace period to take corrective measures began on July 20, for three months, in line with Paragraph (c), Article 33 of the Listing Rules.

In June 2023, the company split its stock’s par value to SAR 0.50 per share, with current capital amounting to SAR 578.24 million divided into 1.15 billion shares.

Last July, Shams board proposed a reverse split to raise the par value from SAR 0.50 to SAR 10 per share, thereby reducing the number of shares to 57.82 million from 1.15 billion.

The company had been scheduled to hold an EGM (second meeting) on Sept. 21. However, the meeting was not convened due to a lack of quorum.