Naseej recommends 43.4% capital cut, followed by SAR 150 mln rights issue

28/09/2020 Argaam


Naseej International Trading Co.’s board of directors recommended a 43.4% capital cut from SAR 178.16 million to SAR 100.76 million through writing off 7.74 million shares (1 share for every 2.302 share), during the extraordinary general meeting held today, Sept. 28.

 

The capital reduction is intended to offset SAR 77.4 million in accumulated losses as of June 30, 2020 and restructure the company’s capital, the company said in a bourse statement.

 

Key Figures of the Capital Reduction

Current Capital

SAR 178.16 mln

Number of shares

17.82 mln shares

Reduction (%)

43.4%

New Capital

SAR 100.76 mln

New number of shares

10.08 mln

Method

Writing off 7.74 million shares (1 share for every 2.302 share)

Reason

Offset SAR 77.4 million in accumulated losses as of June 30, 2020 and restructure the company’s capital

 

Meanwhile, the board of directors recommended a capital hike through SAR 150 million rights issue to be implemented following the capital cut.

 

The capital hike mainly aims at raising Naseej’s financial solvency, strategic expansion, improving financial performance, borrowing rates and the financing costs incurred, the statement added.

 

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.

 

Both capital cut and capital hike are pending approvals of the general assembly and related regulatory approvals.

 

In January 2020, Naseej (previously Al Sorayai) approved a capital hike from SAR 65.5 million to SAR 178.16 million through issuing 11.27 million rights issue, according to data compiled by Argaam.

 

Key Capital Changes

January 2020

172% capital hike to SAR 178.16 million from SAR 65.5 million through rights issue

August 2019

70.89% capital cut to SAR 65.5 million from SAR 225 million

December 2017

40% capital reduction to SAR 225 million from SAR 375 million, to offset accumulated losses

April 2013

25% capital raise from SAR 300 million to SAR 375 million

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