Saudi Cable board recommends 89.5% capital cut; hike to follow via SAR 280 mln rights issue

Logo of Saudi Cable Co.

Saudi Cable Co.’s board of directors recommended to cut capital by 89.5% from SAR 66.73 million to SAR 7 million to offset accumulated losses, according to a statement to Tadwul.

Capital Reduction Details
Current Capital	SAR 66.73 mln
Number of Shares	6.67 mln
New Capital	SAR 7 mln
Number of Shares	700,000
Percentage of Reduction	89.5% (0.895-for-1 existing share)
Reason	Restructuring capital to offset 89.5%, or SAR 59.73 mln, of accumulated losses.
Date of Reduction	By the end of the second trading day following the extraordinary general meeting (EGM), which decided the capital reduction
Method	Cancelling 5.97 mln shares

The board of directors also proposed to later increase capital via a SAR 280 million rights issue:

Capital Increase Details
Current Capital	SAR 7 mln
Number of Shares	700,000
New Capital	SAR 287 mln
Number of Shares	28.7 mln
Percentage of Increase	4000%
Method	Offering and listing 28 million rights
Reason	To restructure capital and inject funds to fulfill the requirements of the working capital and boost the operating capacity as well as future activities
Record Date	Shareholders of record on the date of the EGM that decides to increase capital and those registered with Edaa on the second trading following the date of the EGM – to be determined later

.The company indicated that there is no relevant financial impact on its financial obligations

Updates regarding the appointment of a financial advisor and the submission of the capital increase/reduction requests to the Capital Market Authority (CMA) will be disclosed, after obtaining the approvals of the competent authorities and the company’s EGM.

Since listing, Saudi Cable has raised and cut its capital several times, according to data available with Argaam.

Saudi Cable Capital Changes
Date	Capital (SAR mln)	Reduction/ Increase
1992	270	Capital increase by bonus shares to SAR 300 mln
1997	300	Capital increase by rights issue to SAR 500 mln
2004	500	Capital increase by rights issue to SAR 640 mln
2006	640	Capital increase by rights issue to SAR 760 mln
2017	760	Capital reduction by 46.83% to SAR 404.1 mln
2018	404.1	Capital reduction by 72.63% to SAR 110.6 mln
2020	110.6	Capital increase by SAR 250 mln rights issue to SAR 360.6 mln
Feb. 2022	360.6	Capital reduction by 27.3% to SAR 262.3 mln
July 2022	262.3	Capital reduction by 74.6% to SAR 66.7 mln

Comments {{getCommentCount()}}

Be the first to comment

رد{{comment.DisplayName}} على {{getCommenterName(comment.ParentThreadID)}}

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.

Comments {{getCommentCount()}}

رد{{comment.DisplayName}} على {{getCommenterName(comment.ParentThreadID)}}

{{comment.DisplayName}}

Most Read

Market Indices

Quotes

Popular Links

Quick Links

About Us

Join Us

Follow Us