Logo of Saudi Industrial Development Co. (SIDC)
Saudi Industrial Development Co.'s (SIDC) board of directors recommended a 66.25% capital cut to SAR 135 million from the current SAR 400 million.
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Capital Cut Details |
|
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Current Capital |
SAR 400 mln |
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Number of Shares |
40 mln |
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New Capital |
SAR 135 mln |
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New Number of Shares |
13.5 mln |
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Percentage of Decrease |
66.25% (Writing off 0.6625 share for each existing share) |
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Reason |
To restructure capital and offset accumulated losses |
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Date of Capital Reduction |
By the close of the second trading day following the EGM that will decide on the capital cut |
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Method |
Writing off 26.5 mln shares |
According to a statement to Tadawul, the board also proposed a subsequent increase in capital via a SAR 165 million rights issue, to enable the company to implement its operational plans, support working capital, and strengthen its financial position.
Shareholders on the date of the EGM during which the capital increase is approved are eligible for the rights offering, along with shareholders registered with Edaa at the end of the second trading day following the EGM.
Alinma Investment was appointed as financial advisor on both the capital reduction and hike as well as underwriter on the rights issue. Updates regarding the filing of the capital reduction and capital hike applications with the Capital Market Authority (CMA) will be duly revealed, the statement added.
SIDC pointed out that the proposal is subject to approvals from the related authorities and company shareholders, noting that the shareholders’ approval of increasing the company’s capital is conditional on the approval of the proposed capital reduction.
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