Chemanol shareholders approve 44% capital cut, reject SAR 480 mln rights issue

Logo of Methanol Chemicals Co.

Methanol Chemicals Co.’s (Chemanol) shareholders approved a 44% capital cut to SAR 674.51 million from SAR 1.21 billion to restructure the company’s capital and offset accumulated losses, during the extraordinary general meeting (EGM) held on June 28.

Meanwhile, shareholders rejected increasing the capital through a SAR 480 million rights issue, the company said in a bourse statement.

In a separate statement, the Saudi Exchange (Tadawul) said that the fluctuation limits for Chemanol will be based on a share price of SAR 25.10 and all the outstanding orders will be canceled.

Furthermore, the company will be suspended as per the Listing Rules for two business days starting today, June 29, until the Securities Depository Center Company (Edaa) reflects shares reduction on investors’ portfolios.

Trading suspension on the company will be lifted on Wednesday, June 30.

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