Logo of Al-Baha Investment and Development Co.
Al-Baha Investment and Development Co.’s board of directors decided, on Sept. 3, to cancel its recommendation on reducing the company’s capital by lowering the stock’s par value from SAR 0.10 to SAR 0.07, the new nominal value of the share.
The company said in separate statements to Tadawul that the board recommended reversing the stock par value from SAR 0.10 to SAR 1, while keeping the company’s capital unchanged.
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Following the reverse stock split, the company’s capital will be consolidated into 297 million shares, each with a nominal value of SAR 1, instead of 2.97 billion shares. Al-Baha is committed to completing the necessary related procedures, the statement said.
Moreover, the board recommended a 26.5% capital cut from SAR 297 million to SAR 218.30 million, as shown below:
|
Capital Cut Details |
|
|
Current Capital |
SAR 297 mln |
|
Number of Shares |
2.97 bln |
|
Stock Nominal Value |
SAR 0.10 |
|
Percentage of Capital |
26.5% (1 share for every 3.77 shares) |
|
New Capital |
SAR 218.3 mln |
|
New Number of Shares |
2.18 bln |
|
Reason |
Amortization of SAR 78.71 million from the company’s accumulated losses of SAR 79.97 million as of June 30, 2024. The company’s accumulated losses after the reduction will reach SAR 1.26 million, or 0.58% of the company’s new capital, amounting to SAR 218.30 million. |
|
Method |
Writing off 787.05 million shares with a nominal value of SAR 0.10 per share at a rate of 1 share per 3.77 shares held |
|
Date |
End of the second trading day following the EGM’s approval |
The capital reduction is subject to the approval of the official and regulatory authorities and the extraordinary general meeting (EGM), the statement said. The capital cut will have no material impact on Al-Baha’s obligations.
Additionally, the company cancelled its previous recommendation to appoint Aldukheil Financial Group as financial advisor for the capital reduction.
Al-Baha’s board appointed Wasatah Capital as financial advisor, the statement said, indicating that any relevant updates will be duly revealed.
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