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Tihama Advertising and Public Relations Co.’s board of directors amended, on Feb. 7, its capital increase proposal to the extraordinary general meeting (EGM), according to a bourse filing. 

 

The board recommended a capital reduction by SAR 125 million through cancelling shares, and then capital will be increased by SAR 350 million via a rights issue. 

 

This was due to the fact that the deadline given to the listed joint stock companies to suspend the enactment of some provisions of the New Corporate Law, will end on March 4, 2022.  

 

Rights Issue Details

Current capital

SAR 175 mln

Number of Shares

17.5 mln

Percentage of Capital Cut 

71.428%

New capital

SAR 50 mln

Number of shares

5 mln

Reason

To restructure capital and offset accumulated losses 

Method

Cancelling 12.5 million shares at 1-for-1.4 shares.

Date of Capital Reduction

The close of the second trading day following the EGM .

 

Alinma Investment Co. was appointed as a financial advisor for the capital reduction. Updates as regards submitting the capital reduction application to the Capital Market Authority (CMA) will be duly revealed. 

The below table shows the details of the capital increase via a rights issue after a capital reduction:

 

Details of Capital Increase via Rights Issue

Capital after Reduction

SAR 50 mln

Number of shares

5 mln

Percentage of Increase  

700%

New capital

SAR 400 mln

Number of shares

40 mln

Reason

To finance expansion plans as well as future investments, boost working capital, and repay financial obligations. 

Method

Adding 35 mln shares 

Record Date 

Shareholders of record on the EGM date, and those registered at Edaa on the second trading day after the EGM.  

 

These proposals are subject to the approvals of the relevant competent authorities and the EGM. 

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