Saudi Cable submits capital cut, rights issue requests to CMA

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Saudi Cable Co. submitted, on Aug. 23, a request for capital reduction followed by an increase via rights issue to the Capital Market Authority (CMA), according to a bourse statement.

The approval of the extraordinary general assembly (EGM) on the process of increasing the company’s capital by issuing rights issue is conditional on the EGM’s approval of the proposed reduction of the capital.

The company will announce any future developments in this regard in due course.

In July, the company’s board of directors recommended to cut capital by 27.26% from SAR 360.61 million to SAR 262.31 million to restructure capital and offset the accumulated losses, Argaam reported.

On the other hand, 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.

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