Amiantit recommends 41.95% capital cut to offset losses, reduces rights issue to SAR 120 mln

Saudi Arabian Amiantit Co.’s board of directors recommended on June 11 capital hike through a SAR 120 million rights issue, instead of a previous recommendation on a SAR 300 million rights issue, the company said in a statement on Tadawul on Sunday.

The board also recommended a 41.95% capital reduction to offset accumulated losses ahead of the planned rights issue.

There is no significant impact of the capital reduction on the company's liabilities, Amiantit added.

The capital cut and hike processes are subject to approval of the extraordinary general meeting (EGM) and the regulatory authorities.

Wasatah Capital was named as financial advisor for the capital cut, Amiantit noted, adding that the capital cut and hike files will be submitted to the Capital Market Authority (CMA) for approval. 

On Oct. 4, 2019, Amiantit’s board of directors proposed SAR 300 million right issue to raise the company’s capital, Argaam reported