Saudi Fisheries amends capital cut recommendation

Saudi Fisheries Co.’s board of directors has amended its capital cut recommendation to SAR 101.1 million from SAR 200 million, the company said in a statement on Tadawul.

The process is intended to offset the company’s accumulated losses of SAR 98.9 million which represents 49.45 percent of capital.

The decision was made after the company incurred additional losses of SAR 15.5 million in Q2 and Q3 2018, thus widening accumulated losses from SAR 83.5 million to SAR 98.9 million, the statement added.

The capital cut is pending approval from the general assembly and regulator.

Following the capital cut, Saudi Fisheries plans to increase capital to SAR 300 million through a rights issue of SAR 198.9 million.

In May, the company’s board of directors recommended a 41.75 percent capital cut to around SAR 116.5 million from SAR 200 million to write off accumulated losses, according to data compiled by Argaam.