Naseej shareholders approve 65.4% capital cut to offset accumulated losses

Naseej International Trading Co.’s shareholders approved a 65.4% capital cut to SAR 61.63 million from SAR 178.16 million during the extraordinary general assembly meeting (EGM) held on Dec. 20, 2020, the insurer said in a statement on Tadawul.

The capital cut is intended to offset accumulated losses through writing off 11.65 million shares.

Accordingly, the total number of the company's shares will decrease from 17.82 million to 6.16 million.

The reduction shall be applicable on all shareholders registered in the company’s record at the Securities Depositary Center Company (Edaa) at the end of the second trading day after the EGM.

The capital cut will have no significant impact on Naseej’s financial obligations.

In a separate statement, the Saudi Stock Exchange (Tadawul) announced Naseej’s daily trading fluctuation limit after its capital reduction will be based on a share price of SAR 124.40.

The shares will be suspended for two business days starting today, Dec. 21 until Dec. 22, 2020.

The Securities Depository Center (Edaa) will deposit the additional shares into the investor’s portfolios by Dec. 22, the statement said.

In November, Naseej’s board of directors adjusted its previous recommendation for capital cut to 65.4%, instead of 43.4%, in light of the losses recorded in Q3 2020.