Logo of Al-Baha Investment and Development Co.
Al-Baha Investment and Development Co.’s board of directors amended its capital reduction recommendation to a 30% cut from SAR 297 million to SAR 207.9 million, instead of the previously-proposed 25% decrease, according to a statement to Tadawul.
The capital cut will be through cutting the nominal value of the stock from SAR 0.10 to SAR 0.07 by writing off SAR 89.1 million of the company's current capital to offset all accumulated losses, without reducing the number of current shares — a move earlier recommended by the board.
The capital reduction is still subject to the approval of the extraordinary general assembly, Al-Baha added.
|
Capital Reduction Details |
|
|
Current Capital |
SAR 297 mln |
|
Number of Shares |
2.97 bln |
|
Percentage Decrease (%) |
30% |
|
New Capital |
SAR 207.90 mln |
|
New Number of Shares |
2.97 bln |
|
Reason |
To write off all accumulated losses amounting to SAR 85.46 mln as of March 31, 2023, without reducing the number of shares |
|
Method of Reduction |
Writing off SAR 89.1 million of capital |
|
Date of Reduction |
End of second trading day after the extraordinary general meeting (EGM) date |
There is no significant impact of reducing the company's capital on its financial obligations, the statement added, noting that the move is conditional on the approval of the relevant official and regulatory authorities as well as the EGM.
Al-Baha will later announce the appointment of the financial advisor and will reveal updates on filing for the approval of the Capital Market Authority (CMA).
In May, the company’s board of directors recommended a 25% capital decrease from SAR 297 million to SAR 222.75 million, data compiled with Argaam showed.
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