Alhokair Group recommends 37.64% capital cut, followed by SAR 307 mln rights issue

Abdulmohsen Alhokair Group for Tourism and Development’s (Alhokair Group) board of directors recommended capital reduction by 37.64% from SAR 550 million to SAR 343 million, by cancelling 20.7 million shares to offset accumulated losses, during the meeting held today, Oct. 28.

The capital reduction proposal will not impact the company’s liabilities and is subject to the approval of the competent authorities and the upcoming general meeting.

Meanwhile, the board of directors also recommended a capital increase through SAR 307 million rights issue. The capital top-up is aimed at boosting solvency as well as implementing strategic expansions in addition to improving operating performance and the borrowing portfolio.

Eligibility will be to shareholders holding shares on the day of the extraordinary general meeting (EGM) that approves the capital hike including those registered at the Securities Depository Center (Edaa) at the end of the second trading day following the date of the EGM, the date of which will be determined later.

The capital hike is also pending the approval of the general assembly and required regulatory approvals.

Alhokair’s board of directors appointed Falcom Financial Services as a financial advisor for the capital increase and reduction.

Any updates will be revealed in due course after submitting the capital cut request to the Capital Market Authority (CMA) for approval.