Fawaz Alhokair shareholders approve 45.3% capital cut to SAR 1.15 bln

Logo of Fawaz Abdulaziz Alhokair Co.

Fawaz Abdulaziz Alhokair Co.’s shareholders approved the board of directors’ recommendation to reduce capital to SAR 1.15 billion to offset accumulated losses, during the extraordinary general meeting (EGM) held on June 29, according to a bourse statement.

The capital reduction will have no effect on the company’s financial obligations, the statement added.

In a separate statement, the Saudi Exchange (Tadawul) said that the fluctuation limit on Fawaz Alhokair shares after capital reduction will be based on a share price of SAR 20.82, and the outstanding orders will be canceled.

Additionally, the firm’s shares will be suspended for two business days, starting today, June 30, until the Securities Depository Center (Edaa) reflects the capital cut on shareholders’ portfolios.

The suspension will be lifted at the end of trading on July 3.