Maadaniyah amends capital reduction recommendation to 16.76% after Q1 2021 losses

National Metal Manufacturing and Casting Co.’s (Maadaniyah) board of directors amended its capital reduction recommendation to 16.76% to SAR 234 million from SAR 281.12 million to offset SAR 47.12 million accumulated losses.

The company attributed the change in the capital cut recommendation to the losses incurred in Q1 2021.

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

The capital cut is pending approvals of the extraordinary 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. 

The board of directors amended in April its capital cut recommendation to 14.28% from SAR 281.12 million to SAR 240.96 million.

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