Sadirat shareholders approve nominal value reduction to SAR 1/share

Logo of Saudi Industrial Export Co. (Sadirat) 

Saudi Industrial Export Co.’s (Sadirat) shareholders approved the board's recommendation to reduce the stock’s nominal value from SAR 10 to SAR 1 per share during an extraordinary general meeting (EGM) on Sept. 4, according to a Tadawul statement.

The stock split will apply to all shareholders who own shares on the day of the EGM and those registered with the Securities Depository Center (Edaa) by the end of the second trading day following the meeting, Sadirat explained.

The stock split will take effect on the share price starting the business day after the EGM, with the number of shares in shareholder portfolios adjusted accordingly on the second trading day following the EGM.

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Shareholders also approved transferring SAR 642.65 million from the statutory reserve to offset accumulated losses of SAR 51.10 million, which represented 26.29% of capital as of Dec. 31, 2023.

Meanwhile, the EGM rejected the addition of an article to the company's bylaws related to the purchase, sale, and mortgage of its own shares, as well as an amendment to Article 17, which pertains to the formation of the board of directors.

In a separate statement, Tadawul said the stock’s fluctuation limits will be based on a share price of SAR 2.53 today, Sept. 5. Accordingly, the outstanding orders will be canceled.

Edaa will deposit the split shares into shareholder portfolios before the start of trading on Sept. 9, the statement added.