Al Sorayai gets CMA nod for 40% capital cut

Saudi Arabia’s Capital Market Authrotiy (CMA) has approved Al Sorayai Trading and Industrial Group Company’s request to reduce its capital by 40 percent from SAR 375 million to SAR 225 million.

The regulator’s approval for the capital cut – which will decrease the number of shares from 37.5 million to 22.5 million – is conditional on approval of the company’s extraordinary general assembly and completion of necessary regulatory procedures.

Al Sorayai Group’s board of directors last month recommended the capital reduction in order to offset accumulated losses.

Earlier this year, the CMA said Tadawul-listed companies that have accumulated losses exceeding 50 percent of their capital will be forced into liquidation under a new corporate law, unless they fix their finances.