Trading in Malath shares suspended as Tadawul changes status

The Saudi Stock Exchange (Tadawul) has suspended trading in shares of Malath Cooperative Insurance and Reinsurance Co. on Tuesday for two hours from the opening of the session, as it changes it status on the exchange website.

Trading will resume at 11.30 am local time, the statement said.

Tadawul will remove the company’s accumulated losses flag on the website, after Malath said its accumulated losses have reached SAR 25,719 by the end of March, accounting for 21.43 percent of its capital.

The decrease was mainly attributed to reducing the company’s capital to SAR 120 million, after offsetting SAR 180 million in accumulated losses, the insurer said in a bourse statement, adding that the capital reduction will have no impact on its liabilities. 

Malath’s board last October proposed a 60 percent capital cut through cancelling 18 million shares (1.8 shares for every three outstanding shares), Argaam earlier reported.