CMA gives nod for Fawaz Alhokair’s 45% capital reduction

Logo of Fawaz Abdulaziz Alhokair Co.

The Capital Market Authority's (CMA) board approved Fawaz Abdulaziz Alhokair Co.’s application to reduce its capital by 45.3% to SAR 1.147 billion, the market regulator said in a statement today, June 1.

This decision is conditional on the company's extraordinary general assembly (EGM) approval and the completion of the necessary regulatory measures.

The company will publish a disclosure document to its shareholders related to the proposed method of capital reduction and the expected impact of this process within sufficient time prior to the EMG meeting to enable shareholders to vote on the move.

On March 10, the fashion retailer’s board of directors recommended a capital cut from SAR 2.10 billion to SAR 1.147 billion, Argaam reported.

The board also proposed raising capital from SAR 1.15 billion to SAR 2.15 billion through a rights issue, valued at SAR 1 billion, upon completion of the capital reduction process.