Logo of Red Sea International Co.
Red Sea International Co.’s board of directors amended its capital cut recommendation to 49.61% from SAR 309.39 million to SAR 302.34 million through writing off one share for every 2.016 shares held.
The capital reduction amendment was due to the losses realized by the company in Q1 2022, according to a bourse filing today, May 22.
|
Key Figures of the Capital Reduction |
|
|
Current Capital |
SAR 600 mln |
|
Number of Shares |
60 mln |
|
Reduction (%) |
49.61% (1 share for every 2.016 shares held) |
|
New Capital |
SAR 302.34 mln |
|
New number of Shares |
30.23 mln |
|
Method |
Writing off 29.77 million shares |
|
Reason |
Restructuring the company’s capital to offset accumulated losses and support future plans. |
Red Sea emphasized that there will be no impact of the capital cut on its financial obligations.
Meanwhile, the board of directors recommended a capital hike through SAR 150 million rights issue to SAR 452.34 million, to be implemented following the capital cut.
|
Capital Increase Details |
|
|
Capital after reduction |
SAR 302.34 mln |
|
Number of shares after reduction |
30.23 mln |
|
Increase (%) |
49.61% (8 shares for each one share outstanding) |
|
Capital after increase |
SAR 452.34 mln |
|
Number of shares after increase |
45.23 mln |
|
Increase method |
SAR 150 mln rights issue |
|
Reasons |
To support the company’s working capital, enhance its financial solvency, build a modern factory in the Central Region, and develop the firm’s capabilities in residential compounds management, in addition to other purposes |
|
Eligibility |
Shareholders of record on the EGM date and who are registered with the Securities Depository Center Co. (Edaa) at the end of the second trading day following the EGM date |
The capital increase is pending the approval of competent authorities and the upcoming extra ordinary general meeting (EGM).
Red Sea International trimmed net losses after Zakat and tax to SAR 19.1 million for Q1 2022, from SAR 33 million in the year-earlier period.
Accumulated losses stood at SAR 298 million for the same period, representing 49.67% of the company’s capital.
Comments {{getCommentCount()}}
Be the first to comment
رد{{comment.DisplayName}} على {{getCommenterName(comment.ParentThreadID)}}
{{comment.DisplayName}}
{{comment.ElapsedTime}}