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.
|
Details of Capital Cut |
|
|
Current Capital |
SAR 360.61 mln |
|
Number of Shares |
36.06 mln |
|
Reduction (%) |
27.26% (writing off one share for every 3.67 outstanding shares) |
|
New Capital |
SAR 262.31 mln |
|
New Number of Shares |
26.23 mln |
|
Method |
Writing off 9.83 mln shares |
|
Reason |
Restructure capital and amortize SAR 98.3 million of the accumulated losses as of March 31, 2021 |
|
Date |
The second trading day after the extraordinary general meeting (EGM), in which capital reduction was decided. |
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.
|
Details of Capital Increase |
|
|
Current Capital |
SAR 262.31 mln |
|
Number of Shares |
26.23 mln |
|
Capital Hike % |
190.61% |
|
Capital after Increase |
SAR 762.31 mln |
|
Number of Shares after Increase |
76.23 mln |
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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