Al-Baha board recommends reverse stock split to SAR 1, capital cut

Logo of Al-Baha Investment and Development Co.

Al-Baha Investment and Development Co.’s board of directors decided, on Sept. 3, to cancel its recommendation on reducing the company’s capital by lowering the stock’s par value from SAR 0.10 to SAR 0.07, the new nominal value of the share.

The company said in separate statements to Tadawul that the board recommended reversing the stock par value from SAR 0.10 to SAR 1, while keeping the company’s capital unchanged.

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Following the reverse stock split, the company’s capital will be consolidated into 297 million shares, each with a nominal value of SAR 1, instead of 2.97 billion shares. Al-Baha is committed to completing the necessary related procedures, the statement said.

Moreover, the board recommended a 26.5% capital cut from SAR 297 million to SAR 218.30 million, as shown below:

The capital reduction is subject to the approval of the official and regulatory authorities and the extraordinary general meeting (EGM), the statement said. The capital cut will have no material impact on Al-Baha’s obligations.

Additionally, the company cancelled its previous recommendation to appoint Aldukheil Financial Group as financial advisor for the capital reduction.

Al-Baha’s board appointed Wasatah Capital as financial advisor, the statement said, indicating that any relevant updates will be duly revealed.