CMA approves Naseej request to cut capital to SAR 61.6 mln

Saudi Arabia’s Capital Market Authority (CMA) approved a request by Naseej International Trading Co. to reduce its capital to SAR 61.63 million from SAR 178.16 million, the market regulator said in a statement on Thursday.

Accordingly, the total number of shares will decrease from 17.82 million to 6.16 million.

The CMA nod is conditional on the company’s extraordinary general assembly approval and completion of the necessary procedures, the statement added.

In September, Naseej board of directors proposed reducing capital by 43.4%, from SAR 178.16 million to SAR 100.76 million, to offset accumulated losses, according to Argaam data.

The board of directors also recommended raising capital through an SAR 150 million rights issue following the capital cut.

The board of directors change its previous recommendation for capital cut to 65.4% to SAR 61.6 million, according to a bourse statement.