Maadaniyah amends capital cut recommendation to 14.28% after Q4 2020 losses

01/04/2021 Argaam


National Metal Manufacturing and Casting Co.’s (Maadaniyah) board of directors amended its capital cut recommendation to 14.28% from SAR 281.12 million to SAR 240.96 million through writing off 4.16 million shares.

 

The capital reduction amendment was due to the losses realized by the company in Q4 2020, according to a bourse filing today, April 1, 2021.

 

Key Figures of the Capital Reduction

Current Capital

SAR 281.12 mln

Number of shares

28.11 mln

Reduction (%)

14.28%

New Capital

SAR 240.96 mln

New number of shares

24.10 mln

Method

Writing off 4.02 million shares (1 share for every 7.001 share)

Date of reduction

End of second trading day after the EGM date

Reason

Offset SAR 40.16 million in accumulated losses

 

Maadaniyah emphasized that there will be no impact of the capital cut on its financial obligations.

 

The capital cut is pending approvals of the general assembly and related regulatory approvals.

 

In March, the company’s board recommended a 7.4% capital cut from SAR 281.12 million to SAR 260.31 million to restructure the company’s capital to write off the accumulated losses, Argaam reported earlier.

 

Meanwhile, the board of directors recommended a capital hike through SAR 120 million rights issue to be implemented following the capital cut.

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