Tihama shareholders approve 71.4% capital cut; Tadawul places 2-day trading halt

Logo of Tihama Advertising and Public Relations Co.

Tihama Advertising and Public Relations Co.’s shareholders approved a capital cut by 71.43% to SAR 50 million from SAR 175 million, during the extraordinary general meeting (EGM) held on Feb. 23, according to a bourse filing.

Accordingly, the number of shares will be reduced from 17.5 million to 5 million.  

The capital cut is aimed to restructure Tihama’s capital to offset part of the accumulated losses. It will be carried out through cancelling 12.5 million shares at the end of the second trading day following the EGM date.

Tihama indicated that the capital cut has no impact on the company’s liabilities, operations, or performance.

In a separate statement Tadawul announced that the fluctuation limit will be based on a share price of SAR 168.40 and the outstanding orders will be canceled. Additionally, a trading halt will be placed on the stock as per the listing rules for two business days, and will be lifted on Feb. 27. 

On Feb. 10, Tihama obtained the approval of the Capital Market Authority (CMA) on its capital reduction request, according to data compiled by Argaam.