Emaar EC OKs 53.8% capital cut; trading halted for 2 days

Logo of Emaar The Economic City (Emaar EC)

Emaar The Economic City’s (Emaar EC) shareholders approved the board’s recommendation to cut capital by 53.83% from SAR 11.33 billion to SAR 5.23 billion, during the extraordinary general meeting (EGM), held on Dec. 31, according to a statement to Tadawul.

The capital reduction decision will be applicable on shareholders of record on the EGM date and those registered with the Securities Depository Center (Edaa) by the end of the second trading day following the general meeting date.

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The company stated that it appointed KPMG Professional Services Co. as its auditor to prepare a limited assurance report on capital reduction. The report outlines the reasons for the reduction and its anticipated impact on the company’s obligations, based on the auditor's report. The capital reduction will have no negative impact on the company’s obligations.

In a statement to Tadawul, the company noted that a trading halt will be placed on the stock for two business days as of today, Jan. 1, 2025. Trading will resume on shares at the adjusted price as of Jan. 5.

Meanwhile, Tadawul said the price fluctuation limit for the company's shares will be calculated based on a share price of SAR 18.96, and all outstanding orders will be canceled.

Edaa will implement the capital reduction in shareholders' investment portfolios.