Fitaihi receives CMA nod to reduce capital by 50%

Fitaihi Holding Group obtained, on June 7, 2021, the approval from the Capital Market Authority (CMA) to reduce its capital by 50% from SAR 550 million to SAR 275 million.

Accordingly, the shares will reduce from 55 million to 27.5 million, the company said in a filing to Tadawul.

The move is pending the approval of the extraordinary general meeting (EGM) and completion of the relevant legal procedures and requirements.

Fitaihi will publish the shareholders’ circular containing the proposed method of capital reduction and the expected relevant effects before the EGM date, to enable shareholders to vote on the resolution.

According to data compiled by Argaam, Fitaihi’s board of directors recommended, on March 4, 2021, a 50% capital cut from SAR 550 million to SAR 275 million on having a capital surplus.