Logo of Saudi Cable Co.

Saudi Cable Co.’s (SCC) board of directors recommended today, June 2, a 74.6% capital reduction to SAR 66.73 million from SAR 262.31 million to restructure the company’s capital and offset its accumulated losses, according to a statement to Tadawul.

 

Capital Reduction Highlights

Current Capital

SAR 262.31 mln

Number of Shares

26.23 mln

Reduction (%)

74.6% (0.75 share for every share)

New Capital

SAR 66.73 mln

Reason

Restructuring SCC’s capital to fully offset its accumulated losses amounting to SAR 195.58 million as of March 31, 2022

Date

By the close of the second trading day after the company’s extraordinary general meeting (EGM) date

Method

Writing off 19.56 mln shares

 

There is no significant impact of the capital reduction on the company's financial obligations, the cable manufacturer added.

 

The planned capital reduction is subject to the approval of the competent authorities and the company’s EGM.

 

Further details will be announced upon appointing a financial advisor and submitting the capital cut application to the Capital Market Authority (CMA), SCC noted.

 

Moreover, the board also recommended a SAR 400 million rights issue to raise the company’s capital when the planned reduction is complete.

 

Capital Increase Highlights

Current Capital

SAR 66.73 mln

Number of Shares

6.67 mln

New Number of Shares

46.67 mln

Percentage Increase (%)

599%

Reason

Restructuring SCC’s capital and injecting fresh funds to boost working capital and allow the company to increase its operating capacity and support future business

Method

Offering 40 mln rights issue shares 

 

Shareholders of record by the close of trading on the second trading day after the EGM date will be eligible for the rights issue. The EGM date will be set later, the company concluded.   

 

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