Saudi Fisheries gets CMA nod on 63% capital cut

Saudi Fisheries Co. has obtained the approval of the Capital Market Authority (CMA), Saudi Arabia’s market regulator, to reduce capital by 62.64 percent to SAR 200 million from around SAR 535 million, the company said in a statement to Tadawul.

Saudi Fisheries will reduce capital by writing down 33.54 million outstanding shares.

The CMA’s decision is pending the approval of the company’s extraordinary general meeting.

Last month, Saudi Fisheries’ board of directors recommended the capital reduction after accumulated losses exceeded 50 percent of capital.

The firm hired Falcom Financial Services as a financial advisor for the capital cut, as part of its restructuring plan.

Earlier in February, the CMA said Tadawul-listed companies that have accumulated losses exceeding 50 percent of their capital will be forced into liquidation under a new corporate law, unless they fix their finances.