CMA greenlights SIDC's capital cut to SAR 135M

Logo of Saudi Industrial Development Co. (SIDC)

Saudi Industrial Development Co. (SIDC) announced today, July 17, the approval of the Capital Market Authority (CMA) on its request to cut capital from SAR 400 million to SAR 135 million, thus reducing the share capital from 40 million to 13.5 million.

In a statement, the market regulator said its decision is conditional on the company's extraordinary general assembly (EGM) approval and the completion of the necessary procedures related to the applicable regulations.

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The CMA’s approval of the company’s capital cut file should not be seen as an endorsement of the move’s feasibility. It merely means that the regulatory requirements were met in accordance with the Capital Market Law and its executive regulations.

In May, SIDC’s board of directors recommended a 66.25% capital cut to SAR 135 million from the current SAR 400 million to restructure capital and offset accumulated losses, Argaam previously reported.

The board also proposed a subsequent capital increase via a SAR 165 million rights issue to enable SIDC to implement its operational plans, support working capital, and strengthen its financial position.