SIECO recommends 90% capital cut to offset losses

12/11/2017 Argaam

 

Saudi Industrial Export Co.’s (SIECO) board of directors has recommended a 90 percent capital reduction to SAR 10.8 million form SAR 108 million, in order to offset accumulated losses, the company said in a statement to Tadawul.

The capital cut is pending regulatory approval as well as the approval of SIECO’s general assembly.

Shareholders’ ownership ratios will remain unchanged after the capital cut, the statement said.

Shareholders of record on the general assembly meeting date, including those registered at the Securities Depository Center two days after, are eligible for the capital cut.

Earlier this year, the Saudi Arabia’s Capital Market Authority (CMA) said Tadawul-listed companies that have accumulated losses exceeding 50 percent of their capital will be forced into liquidation under a new corporate law, unless they fix their finances.

Capital reduction details

Current Capital

SAR 108 mln

Number of shares

10.8 mln

Capital cut percent

90%  (90 for every 100 shares)

New capital

SAR 10.8 mln

New number of shares

1.08 mln shares

Method of capital cut

Cancelling 9.72 mln shares

Reasons

To offset accumulated losses

Comments {{getCommentCount()}}

Be the first to comment

loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.