Logo of Tihama Advertising and Public Relations Co.
Tihama Advertising and Public Relations Co.’s board of directors amended, on Feb. 7, its capital increase proposal to the extraordinary general meeting (EGM), according to a bourse filing.
The board recommended a capital reduction by SAR 125 million through cancelling shares, and then capital will be increased by SAR 350 million via a rights issue.
This was due to the fact that the deadline given to the listed joint stock companies to suspend the enactment of some provisions of the New Corporate Law, will end on March 4, 2022.
|
Rights Issue Details |
|
|
Current capital |
SAR 175 mln |
|
Number of Shares |
17.5 mln |
|
Percentage of Capital Cut |
71.428% |
|
New capital |
SAR 50 mln |
|
Number of shares |
5 mln |
|
Reason |
To restructure capital and offset accumulated losses |
|
Method |
Cancelling 12.5 million shares at 1-for-1.4 shares. |
|
Date of Capital Reduction |
The close of the second trading day following the EGM . |
Alinma Investment Co. was appointed as a financial advisor for the capital reduction. Updates as regards submitting the capital reduction application to the Capital Market Authority (CMA) will be duly revealed.
The below table shows the details of the capital increase via a rights issue after a capital reduction:
|
Details of Capital Increase via Rights Issue |
|
|
Capital after Reduction |
SAR 50 mln |
|
Number of shares |
5 mln |
|
Percentage of Increase |
700% |
|
New capital |
SAR 400 mln |
|
Number of shares |
40 mln |
|
Reason |
To finance expansion plans as well as future investments, boost working capital, and repay financial obligations. |
|
Method |
Adding 35 mln shares |
|
Record Date |
Shareholders of record on the EGM date, and those registered at Edaa on the second trading day after the EGM. |
These proposals are subject to the approvals of the relevant competent authorities and the EGM.
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