Logo of Tihama
Tihama Advertising and Public Relations Co.’s board of directors recommended, in a meeting on July 13, a 42.9% capital cut from SAR 175 million to SAR 100 million, according to a filing to Tadawul.
The move aims to restructure the company’s capital to offset accumulated losses.
|
Key Figures of the Capital Cut |
|
|
Current Capital |
SAR 175 mln |
|
Number of Shares |
17.5 mln |
|
Reduction (%) |
42.9% |
|
New Capital |
SAR 100 mln |
|
New Number of Shares |
10 mln |
|
Method |
Writing off 7.5 mln shares |
|
Reason |
Restructuring the company’s capital to offset accumulated losses |
|
Date |
The second trading day after the company’s extraordinary general meeting (EGM) |
The recommendation to reduce the company's capital is subject to the approval of the related official authorities and the EGM.
An announcement will be made upon appointing the financial advisor, as well as when the capital reduction request and the rights issue files are submitted to the Capital Market Authority (CMA).
Meanwhile, the board of directors recommended a capital increase through SAR 50 million rights issue to be implemented following the capital cut.
|
Key Figures of the Capital Increase |
|
|
Capital Before Increase |
SAR 100 mln |
|
Number of Shares Before Increase |
10 mln |
|
Increase (%) |
50% |
|
New Capital Post Increase |
SAR 150 mln |
|
Number of Shares Post Increase |
15 mln |
|
Reason |
To pay government financial liabilities, which are dues to the Zakat, Tax and Customs Authority (ZATCA) and dues from advertising site rental contracts. |
|
Method |
Adding 5 mln shares |
|
Eligibility |
Shareholders that own shares on the EGM date and that are registered at Edaa at the end of the second trading day following the EGM date, which will be determined later. |
The recommendation to increase the company's capital is subject to the approval of the related official authorities and the approval of the EGM.
The recommendation to increase the company's capital is subject to the approval of the related official authorities and Tihama’s EGM.
In July 2020, Tihama increased its capital from SAR 75 million to SAR 175 million, through a SAR 100 million rights issue, according to data compiled by Argaam.
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