Al-Fakhera says 4 lawsuits filed against board chairman

Logo of Al-Fakhera Men's Tailoring Co.

Al-Fakhera Men's Tailoring Co., which is set to be listed on the Nomu-Parallel Market next week, stated that there are a number of lawsuits were filed against its board chairman.

According to the offering prospectus, there is a current case before the Commercial Court in Riyadh, which demands 58% of the ownership of Chairman and major shareholder Suleiman Hamad Al Yahya.

If a ruling is issued in favor of the plaintiff, the case will affect the chairman’s ownership in the company and thus the ownership structure of the company's shareholders. This may result in a change in the board and executive management, which may cause a negative and material impact on the company's operations, financial position, operations, and future prospects, according to the company.

Chairman Al Yahya owns nearly 85.5% of the company's pre-IPO capital, which will decrease to 71.25% after the offering.

Al-Fakhera also indicated that there are three other lawsuits filed against the Chairman as a defendant, which affect the company's business by an amount of SAR 365,000.