AI Summary
Logo of Red Sea International Co.
Shareholders of Red Sea International Co. approved the board of directors’ recommendation to reduce capital by 49.61% from SAR 600 million to SAR 302.34 million, during the extraordinary general meeting (EGM) held on July 24.
|
Capital Reduction Highlights |
|
|
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. |
There is no financial impact on the company’s financial obligations, the company added.
In a separate statement, the Saudi Exchange (Tadawul) said Red Sea’s daily trading fluctuation limit after the capital reduction will be based on a share price of SAR 28.3. Accordingly, the outstanding orders will be canceled.
Red Sea shares will be placed in a trading halt for two business days as of today, July 25.
The Securities Depository Center (Edaa) will deposit the additional shares into investor portfolios by July 26, Tadawul added.
Be the first to comment
Comments Analysis: