Saudi Cable board recommends 27.3% capital cut, followed by SAR 500 mln rights issue

Logo of Saudi Cable Co.

Saudi Cable Co.’s board of directors recommended on June 29, to cut capital by 27.26% from SAR 360.61 million  to SAR 262.31 million to restructure capital and offset the accumulated losses, the company said in a bourse filing.

The capital cut will have no impact on the company’s financial liabilities, the statement added.

The board also proposed to increase capital via a SAR 500 million rights issue. The company will offer 50 million shares at SAR 500 million to increase capital by 190.61% to SAR 762.31 million.

The increase aims to restructure capital, boost the working capital, allowing the company to improve operating capacity and support future business plans.

The capital increase/decrease is subject to the approvals of the EGM as well as other competent authorities.

FALCOM Financial Services was appointed as a financial adviser for the capital reduction, and as a financial adviser and lead manager for the capital increase.

Updates will be duly revealed, the statement added.

In February 2021, Saudi Cable’s board recommended increasing the company’s capital through rights issue of SAR 360 million.

Since its listing on the Saudi market, Saudi Cable reduced and raised its capital several times, as follows:

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