Al Sorayai gets CMA approval on 71% capital cut

Al Sorayai Trading and Industrial Group Company has obtained the approval of the Capital Market Authority (CMA) to cut its capital by 70.9 percent to SAR 65.5 million from SAR 225 million.

Accordingly, the number of outstanding shares will be reduced to 6.55 million from 22.5 million, the market regulator said in a statement.

The decision is still subject to shareholders’ approval.

The investment firm is required to publish more details about the planned capital cut and the expected impact ahead of the upcoming general assembly meeting, the CMA added.

In July, Al Sorayai amended the board of directors’ recommendation to offset the accumulated losses to a capital cut, Argaam reported.

The board proposed decreasing capital from SAR 225 million to SAR 65.5 million, through cancelling 15.95 million shares, or 70.89 percent of capital.