Red Sea board proposes using SAR 295.7M share premium to offset accumulated losses

Red Sea's board proposal is still subject to the ordinary general meeting's (OGM) approval

Red Sea International Co.’s board of directors recommended today, Nov. 23, using the entire share premium balance of SAR 295.69 million to offset accumulated losses.

In a statement to Tadawul, the company said, if approved by shareholders, the move will help bring accumulated losses to less than 1% of capital, based on the financial position as of Sept. 30, 2025.

The board recommendation is still subject to approval by the company’s ordinary general meeting (OGM).

An announcement will be made later on the OGM voting outcome, as well as on any related developments, it added.

Red Sea’s extraordinary general assembly recently decided to increase capital by 59.64% through debt conversion by issuing 18.03 million new shares to some creditors, Argaam earlier reported.

The conversion price was set at SAR 26.4 per share, representing a SAR 16.4 share premium, totaling SAR 295.69 million for all new shares (the full share premium balance).