Tihama says separate capital decrease request filed as suspension of Companies Law provisions nears

Logo of Tihama Advertising and Public Relations Co.

Tihama Advertising and Public Relations Co. announced that the reason for splitting the capital increase request and reduction request was due to the fact that the deadline given to the listed joint stock companies to suspend the enactment of some provisions of the Companies Law, will end on March 4, 2022.

In a statement to Tadawul, the company said an extraordinary general meeting (EGM) will be held for the purpose of reducing the capital by SAR 125 million through cancelling shares, after completing the necessary approvals.

Additionally, Tihama said the board of directors’ recommendation to increase capital by SAR 350 million via a rights issue, after reducing it, is still valid.

The company will file for the approval of the Capital Market Authority (CMA) and an extraordinary general meeting (EGM) will be held for this purpose.

Tihama’s board of directors amended, on Feb. 7, its capital increase proposal to the EGM, Argaam reported.

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.