Fawaz Alhokair board amends capital cut recommendation

Fawaz Abdulaziz Alhokair Co.'s board of directors decided, on Jan. 9, to amend the previous recommendation on capital reduction, to be followed by capital increase, according to a bourse filing.

The board recommended decreasing capital from SAR 2.1 billion to SAR 1.1308 billion, through cancelling 96.9 million ordinary shares (1-for-2.167 shares).

The move will not have any effect on the company's financial obligations, operations, or financial, operational or organizational performance.

The company said that the capital reduction will be effected at the end of the second trading day following the extraordinary general meeting (EGM), which will decide on the reduction.

The recommendation is pending the approval of regulatory authorities and the EGM.

There is no change in the appointment of the financial advisors, as Alinma Investment Company and Credit Suisse Saudi Arabia will jointly remain financial advisors for the capital increase process.

Alinma Investment has been appointed as the lead manager and underwriter for the proposed capital hike.

On Nov. 10, the board of directors recommended a 46.2% capital cut from SAR 2.1 billion to SAR 1.1308 billion, according to data available with Argaam.

Meanwhile, the board of directors recommended in the same meeting a capital increase through SAR 1 billion rights issue to be implemented following the capital cut completion.