Maadaniyah amends capital cut recommendation to 14.28% after Q4 2020 losses

National Metal Manufacturing and Casting Co.’s (Maadaniyah) board of directors amended its capital cut recommendation to 14.28% from SAR 281.12 million to SAR 240.96 million through writing off 4.16 million shares.

The capital reduction amendment was due to the losses realized by the company in Q4 2020, according to a bourse filing today, April 1, 2021.

Maadaniyah emphasized that there will be no impact of the capital cut on its financial obligations.

The capital cut is pending approvals of the general assembly and related regulatory approvals.

In March, the company’s board recommended a 7.4% capital cut from SAR 281.12 million to SAR 260.31 million to restructure the company’s capital to write off the accumulated losses, Argaam reported earlier.

Meanwhile, the board of directors recommended a capital hike through SAR 120 million rights issue to be implemented following the capital cut.