Asharqiyah recommends capital cut to offset losses

Asharqiyah Development Co. has recommended a 38.8 percent capital cut from SAR 75 million to SAR 45.9 million, by cancelling 2.9 million shares, in order to offset accumulated losses.

The number of shares will be reduced from 7.5 million to 4.6 million, the company said in a statement to Tadawul on Wednesday, adding that the reduction will be one share per 2.577 shares.

The capital cut will be subject to regulatory and shareholder approval, Asharqiyah said.