Logo of Red Sea International Co.

Red Sea International Co.’s board of directors amended its capital cut recommendation to 49.61% from SAR 309.39 million to SAR 302.34 million through writing off one share for every 2.016 shares held.

 

The capital reduction amendment was due to the losses realized by the company in Q1 2022, according to a bourse filing today, May 22.

 

Key Figures of the Capital Reduction

Current Capital

SAR 600 mln

Number of Shares

60 mln

Reduction (%)

49.61% (1 share for every 2.016 shares held)

New Capital

SAR 302.34 mln

New number of Shares

30.23 mln

Method

Writing off 29.77 million shares

Reason

Restructuring the company’s capital to offset accumulated losses and support future plans.

 

Red Sea emphasized that there will be no impact of the capital cut on its financial obligations.

 

Meanwhile, the board of directors recommended a capital hike through SAR 150 million rights issue to SAR 452.34 million, to be implemented following the capital cut.

 

Capital Increase Details

Capital after reduction

SAR 302.34 mln

Number of shares after reduction

30.23 mln

Increase (%)

49.61% (8 shares for each one share outstanding)

Capital after increase

SAR 452.34 mln

Number of shares after increase

45.23 mln

Increase method

SAR 150 mln rights issue

Reasons

To support the company’s working capital, enhance its financial solvency, build a modern factory in the Central Region, and develop the firm’s capabilities in residential compounds management, in addition to other purposes

Eligibility

Shareholders of record on the EGM date and who are registered with the Securities Depository Center Co. (Edaa) at the end of the second trading day following the EGM date
 

The capital increase is pending the approval of competent authorities and the upcoming extra ordinary general meeting (EGM).

 

Red Sea International trimmed net losses after Zakat and tax to SAR 19.1 million for Q1 2022, from SAR 33 million in the year-earlier period.

 

Accumulated losses stood at SAR 298 million for the same period, representing 49.67% of the company’s capital.

 

For more IPOs

Comments {{getCommentCount()}}

Be the first to comment

{{Comments.indexOf(comment)+1}}
{{comment.FollowersCount}}
{{comment.CommenterComments}}

رد{{comment.DisplayName}} على {{getCommenterName(comment.ParentThreadID)}}

{{comment.DisplayName}} حساب موثّق

{{comment.ElapsedTime}}
loader Train
loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.

Related News

Red Sea International board recommends 48.44% capital cut, followed by SAR 150 mln rights issue

Popular Links

Quick Links

Join Us

Argaam.com Copyright © 2024, Argaam Investment, All Rights Reserved
Call Request