Tadawul approves OTC trading of Al Mojil’s suspended shares

Saudi Stock Exchange (Tadawul) approved over-the-counter trading of Mohammad Al Mojil Group’s suspended shares starting Dec. 28, 2014.

Tadawul said in a statement that it granted approval after reviewing the group’s request, while taking into consideration the Capital Market Authority’s (CMA) procedures for dealing with suspended and delisted shares.

The exchange added that suspended shares may involve high risk and urged investors to carefully consider their decision. It also recommended consulting with an authorized financial advisor prior to any investment decision.

The Saudi bourse also emphasized that the approval merely means that the legal requirements according to the Capital Market Law have been met and should never be considered as a recommendation to invest in the company.

According to Argaam, Al Mojil Group’s shares have been suspended since July 22, 2012.

The group’s accumulated losses reached SAR 2765.2 million or 221.2 percent of its paid-in capital by the end of September 2014.

Last September, the Saudi Capital Market Authority permitted OTC trading of suspended and delisted stocks of local companies.