Saudi Paper Manufacturing Co.’s shareholders approved reducing capital by 62.45 percent to SAR 92 million to offset the accumulated losses through cancelling 15.3 million shares, the company said in a bourse filing.
The capital reduction will have no impact on the company’s liabilities, the statement added.
According to Tadawul, a trading halt will be placed on the stock for two business days as of Tuesday, Nov. 5, 2019, and the fluctuation rate will be calculated as per a stock price of SAR 23.52.
Last month, Saudi Paper Manufacturing’s board of directors recommended a 39.2 percent capital reduction to SAR 149 million to offset accumulated losses, according to data compiled by Argaam.
SPM reported a net loss of SAR 24.2 million for Q3 2019 raising accumulated losses to SAR 153.41 million or 62.6 percent of capital.
In September 2018, the Saudi listed firm cut its capital from SAR 450 million to SAR 245 million through writing off 20.5 million shares to offset accumulated losses.
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Key Figures of the Capital Reduction |
|
|
Current Capital |
SAR 245 mln |
|
Number of shares |
24.5 mln shares |
|
Reduction (%) |
62.45% |
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New Capital |
SAR 92 mln |
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New number of shares |
9.2 mln shares |
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Method |
Cancelling 15.30 mln shares at 1:1.601 |
|
Driver |
To restructure the company’s capital, offset accumulated losses and boost future growth. |
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Date of capital reduction |
Nov. 6, 2019 |
|
Relevant impact |
No impact |
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