Saudi Arabian Amiantit Co.’s (Amiantit) shareholders approved a 41.95% capital cut to SAR 200 million from SAR 344.52 million through the cancellation of 14.45 million shares to offset 96.61% of accumulated losses.

 

The approval came during the company’s extraordinary general meeting (EGM) held on Dec. 1, 2020.

 

Key Figures of the Capital Reduction

Current Capital

SAR 344.52 mln

Number of shares

34.45 mln shares

Reduction (%)

41.95%

New Capital

SAR 200 mln

New number of shares

20 mln shares

Method

Cancellation of 14.45 mln shares (face value of SAR 10 per share)

Record date

End of second trading day after the extraordinary general meeting date

Driver

To offset 96.61% of accumulated losses

 

The capital cut is unlikely to have significant impact on the company’s financial liabilities, the company said in a statement to Tadawul.

 

Shareholders also approved a capital increase to SAR 320 million from SAR 200 million, through a SAR 120 million rights issue. 

 

Key Figures of the Capital Hike

Current Capital

SAR 200 mln

Number of shares

20 mln shares

Hike (%)

60%

New capital

SAR 320 mln

Number of shares after increase

32 mln shares

Method

Through a SAR 120 mln rights issue (Face value of SAR 10 per share)

Key Figures of the Rights Issue

Number of rights issue shares

12 mln shares

Issue price

SAR 10

Issue size

SAR 120 mln

Record date

End of second trading day after the extraordinary general meeting date

Use of proceeds

Net proceeds will go for financing the working capital as well as repaying the dues of suppliers and banks.
 

A trading halt will be placed on the stock as of Wednesday, Dec. 2, for two business days.

 

The trading suspension will be lifted by end of trading session tomorrow, Thursday, Dec. 3, and the daily trading fluctuation limit will be based on a share price of SAR 23.94. The rights will be deposited in shareholders’ portfolios on Sunday, Dec. 6, 2020.

 

Earlier this month, the Capital Market Authority (CMA) approved a request by Amiantit to reduce its capital to SAR 200 million from SAR 344.52 million, as well as a request to increase capital through a SAR 120 million rights issue.

Comments {{getCommentCount()}}

Be the first to comment

{{Comments.indexOf(comment)+1}}
{{comment.FollowersCount}}
{{comment.CommenterComments}}

رد{{comment.DisplayName}} على {{getCommenterName(comment.ParentThreadID)}}

{{comment.DisplayName}} حساب موثّق

{{comment.ElapsedTime}}
loader Train
loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.

Related News

Amiantit shareholders to vote on capital cut, rights issue on Dec. 1

Popular Links

Quick Links

Join Us

Argaam.com Copyright © 2024, Argaam Investment, All Rights Reserved
Call Request