Al Sorayai seeks CMA nod for 40% capital cut

Al Sorayai Trading and Industrial Group Co. (Al Sorayai Group) has submitted a request for approval to Saudi Arabia’s the Capital Market Authority (CMA) for its 40 percent capital reduction plan, the company said in a statement to Tadawul.

Further details will be revealed in due course, the company said.

Last month, the Al Sorayai Group’s board of directors had recommended a 40 percent capital reduction to SAR 225 million from SAR 375 million, to offset accumulated losses.

Earlier this year, 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.