Fitaihi to deposit compensation from shares write-off after capital cut on Sept. 21

Fitaihi Holding Group headquarters

Fitaihi Holding Group will deposit the compensation amounts from writing off shares, as a result of the reduction in the company's capital, for eligible shareholders on Tuesday, Sept. 21.

The company said in a bourse statement that it will deposit the amount directly in the bank accounts of the eligible shareholders that are linked to their investment portfolios.

The company also highlighted the importance of updating the shareholder bank data to protect their rights.

The Securities Depository Center (Edaa) announced that the shares reduction will be reflected on investors’ portfolios today, Sept. 8.

Fitaihi’s shareholders approved a 50% capital cut to SAR 275 million from SAR 550 million, during the extraordinary general assembly meeting (EGM) held on July 7. The capital cut will be through writing off 27.5 million shares, on having a capital surplus, Argaam earlier reported.

The company earlier announced that creditors’ objection period to the capital reduction ended on Sept. 5, with no claims received.

Trading on shares was suspended for two working days, and will resume today, as the fluctuation limit for the group's share was calculated based on a price of SAR 57.30.