Etihad Wire Factories Company has submitted an official request to the Saudi Capital Market Authority to reduce its capital.
According to ArabiaNet, the company has not announced in its statement further details about the reduction measures and the time it will take.
The company’s board of directors issued a recommendation, at the end of last January, to reduce the capital by about 20%, explaining that financing the reduction process will be made by using the excess of the company’s cash balances.
The Board of Directors believes that the reduction, amounting to 87 million riyals, will have a positive impact through improving performance indicators.
The company's capital after the reduction is 351 million riyals, compared to the current capital of 438.75 million riyals.
The company indicated that the estimated net profit after Zakat and tax during 2019 amounted to 22.1 million Saudi riyals, compared to 7.1 million riyals in 2018, with a growth rate of 211.3%.
The company’s data showed that its revenue amounted to 724.4 million riyals during the past year, compared to 535 million riyals of the company’s revenue during 2018, with a growth rate of 35.4%.
