Al-Baha Investment names advisor on capital reduction

Logo of Al-Baha Investment and Development Co.

Al-Baha Investment and Development Co. appointed, on July 8, Aldukheil Financial Group as financial advisor for the capital reduction, the company said in a statement to Tadawul.

Any updates related to the company’s file submission seeking the Capital Market Authority’s (CMA) approval will be disclosed in due course.

Last week, Al-Baha’s board of directors amended its capital reduction recommendation to a 30% cut from SAR 297 million to SAR 207.9 million, instead of the previously proposed 25% decrease to SAR 222.75 million, according to Argaam.

The capital reduction will be through cutting the nominal value of the stock from SAR 0.10 to SAR 0.07 by writing off SAR 89.1 million of the company's current capital to offset all accumulated losses without reducing the number of current shares — a move earlier recommended by the board.