Logo of Red Sea

Red Sea International Co.’s board of directors recommended reducing capital by 48.44% from SAR 600 million to SAR 309.39 million (one share for each 2.065 shares), to write off the accumulated losses, the company said in a bourse filling.

 

Capital Cut Details

Current capital

SAR 600 mln

Number of shares

60 mln

Reduction (%)

48.44% (one share for each 2.065 shares)

New capital

SAR 309.39 mln

New number of shares

30.94 mln

Method

Canceling 29.06 mln

Reason

To restructure the company's capital to write off its accumulated losses and support future plans
 

The capital reduction will not impact the company’s obligations, operations, or even financial, operating and regulatory performance.

 

The move is pending the approval of competent authorities and upcoming extraordinary general meeting (EGM).

 

Meanwhile, the board recommended a capital increase to SAR 459.39 million, following the capital reduction, through offering a rights issue worth SAR 150 million, as follows: 

 

Capital Increase Details

Capital after reduction

SAR 309.39 mln

Number of shares after reduction

30.94 mln

Increase (%)

48.48% (8 shares for each one share outstanding)

Capital after increase

SAR 459.39 mln

Number of shares after increase

45.94 mln

Increase method

Adding 15 mln shares

Reasons

To support the company’s working capital, enhance its financial solvency, build a modern factory in the Central Region, and develop the firm’s capabilities in residential compounds management, in addition to other purposes

Eligibility

Shareholders of record on the EGM date and who are registered with the Securities Depository Center Co. (Edaa) at the end of the second trading day following the EGM date
 

The capital increase is pending the approval of competent authorities and the upcoming EGM.

 

The board of directors also decided to appoint Al Rajhi Capital as a financial advisor for the capital reduction and increase. This will be announced when submitting the file of capital reduction and increase to the Capital Market Authority (CMA) for approval.

 

For More IPOs

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.

Popular Links

Quick Links

Join Us

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