Saudi Cable shareholders approve 27.3% capital cut, disapprove capital increase

Logo of Saudi Cable Co.

Saudi Cable Co.’s shareholders approved the board of directors’ recommendation to reduce capital by 27.26% to SAR 262.31 million from SAR 360.61 million, to restructure capital and write off the accumulated losses.

Separately, the Saudi Exchange (Tadawul) announced that the cable manufacturer’s daily trading fluctuation limit after its capital reduction will be based on a share price of SAR 25.70 as of Feb. 20.

Meanwhile, the outstanding orders will be canceled.

Trading on the company’s shares will be suspended for two business days, starting from today, Feb. 21.

The Securities Depository Center (Edaa) will deposit the additional shares into the investor’s portfolios, the statement added.

 The stock will resume trading as of Wednesday, Feb. 23.

Meanwhile, shareholders disapproved the board’s recommendation to increase capital through a SAR 500 million rights issue.

The move was to restructure capital and inject fresh liquidity to provide working capital, so that the company can boost its operating capacity and support future business.

Last month, the Capital Market Authority (CMA) approved the company’s application to increase capital through SAR 500 million rights issue, Argaam earlier reported.

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