CMA approves Red Sea International 49.6% capital cut

Logo of Red Sea International Co.

Saudi Arabia’s Capital Market Authority (CMA) gave the green light for Red Sea International Co.’s request to cut capital from SAR 600 million to SAR 302.3 million.

The number of shares will be reduced from 60 million to 30 million, according to the authority’s website.

The move is pending the approval of the upcoming extraordinary general meeting (EGM) and completion of the necessary procedures in relation to the applicable regulations.

The firm will publish a disclosure document on the proposed capital reduction and the expected relevant impact within sufficient time prior to the EGM to allow shareholders to vote on the capital decrease.

On May 22, the board of directors amended its capital cut recommendation to 49.61% from SAR 309.39 million to SAR 302.34 million through writing off one share for every 2.016 shares held, according to data available with Argaam.