CMA approves Arabian Pipes’ request to cut capital by 75% to SAR 100 mln

Logo of Arabian Pipes

The Capital Market Authority (CMA) approved Arabian Pipes Co.'s request to reduce its capital from SAR 400 million to SAR 100 million, thus reducing the number of shares from 40 million to 10 million.

This approval is conditional on the company's extraordinary general assembly meeting (EGM) approval and completion of the necessary procedures in relation to the applicable regulations.

The company will publish a disclosure document to its shareholders related to the proposed method of capital reduction and the expected effect of such reduction within sufficient time prior to the EGM to enable shareholders to vote on the capital decrease.

The CMA's approval of a particular company's application to reduce its capital should never be viewed as an endorsement of the feasibility of the capital decrease.

The CMA's approval of a company's application to reduce its capital merely means that the regulatory requirements as per the Capital Market Law and its Implementing Regulations have been met.

Last June, Arabian Pipes’ board of directors recommended a capital decrease by 75% to SAR 100 million from SAR 400 million, to amortize accumulated losses, Argaam earlier reported.