SIECO board recommends 66.66% capital cut, followed by rights issue

27/12/2021 Argaam

Logo of Saudi Industrial Export Co.


Saudi Industrial Export Co.’s (SIECO) board of directors amended its previous proposal of a capital increase via a rights issue to a capital cut, to be followed with a capital increase, according to a bourse filing.

 

The board of directors proposed to slash capital by 66.66%, or two shares for every three outstanding shares, from SAR 64.80 million to SAR 21.6 million, as follows:

 

Capital Cut Details

Current Capital

SAR 64.80 mln

Number of Shares

6.48 mln

Percentage

66.66% (two-for-every three outstanding shares)

New Capital

SAR 21.60 mln

New Share Capital 

2.16 mln

Method

Cancelling 4.32 mln shares

Reason

To offset accumulated loss at SAR 43.2 mln

 

SIECO’s board of directors also proposed to increase capital, from SAR 21.6 million to SAR 194.4 million via a rights issue, as follows

 

Capital Hike Details

Capital after Reduction

SAR 21.6 mln

Share Capital after Reduction

2.16 mln

Percentage

800% (eight-for-every one outstanding share)

New Capital

SAR 194.4 mln

New Share Capital

19.44 mln

Method

Right issue worth SAR 172.8 mln

Reason

To boost solvency and strategic expansions

 

SIECO attributed the proposal amendment to the deadline, which will end on March 4, 2022, for the listed companies to suspend some of the new Companies Law provisions. In addition, the Capital Market Authority (CMA) has not yet decided on the company's request to increase capital, which was submitted on Dec. 31, 2020.

 

The relevant updates will be duly revealed, the statement added.

 

SIECO’s board of directors recommended, on Nov. 9, 2020, increasing capital via a SAR 129.6 million rights issue, Argaam reported.

 

For More IPOs

Comments {{getCommentCount()}}

Be the first to comment

loader Train
Sorry: the validity period has ended to comment on this news
Opinions expressed in the comments section do not reflect the views of Argaam. Abusive comments of any kind will be removed. Political or religious commentary will not be tolerated.