Edaa implements Molan Steel reverse stock split

Logo of Molan Steel Co.

The Securities Depository Center Co. (Edaa) said it had implemented the reverse stock split of Molan Steel Co. shares in its accounts for eligible shareholders on Nov. 5, following a change in the shares' nominal value.

According to Argaam data, Molan's general assembly recently approved the board's recommendation to consolidate the company's shares by increasing their nominal value from SAR 1 to SAR 10 and reducing the number of shares from 26.6 million to 2.66 million, with no change to the company's capital.

In August, Molan received a notice after its average closing share price fell below the minimum threshold. The company was given three months from Aug. 3 to take corrective action, including consolidating its shares to achieve a closing price of at least SAR 3, unless the share price reached that level during the period.

In October, the board approved an amended plan to address accumulated losses and restructure the company's finances, replacing the previous plan.

The revised plan aims to write off accumulated losses, increase capital, and address the share price falling below SAR 1. The board recommended submitting the plan to the extraordinary general assembly for approval.