Amiantit recommends decreasing and then increasing the capital

The board of directors of the Saudi Arabian Amiantit Company recommended to the extraordinary general assembly decreasing the company's capital and then increasing it, during the board meeting held on Monday.

The board of directors recommended reducing the company's capital from 320 million riyals to 99 million riyals, a decrease of 69.06%, from 32 million shares to 9.9 million shares; For the purpose of restructuring the company's capital to extinguish the accumulated losses.

The company said in a statement to the Saudi market (Tadawul), today, Tuesday, that the reduction date is at the end of the second trading day following the extraordinary general assembly in which it was decided to reduce the capital. The money, provided that 22.1 million shares will be cancelled, as one share will be reduced for every 1.447 approximately shares.

The company clarified that the recommendation to reduce the company's capital is subject to the approval of the regulatory authorities and the approval of the extraordinary general assembly.

And it indicated that the financial brokerage company (Wasata Capital) has been appointed as a financial advisor regarding the capital reduction and capital increase, noting that an announcement will be made upon submitting the request file for capital reduction. The company submitted to the Capital Market Authority for its approval.

The board also recommended, in the same resolution to the extraordinary general assembly, and after completing the capital reduction process, to increase the company's capital through a rights issue of 221 million riyals.< /p>

The company said that the extraordinary general assembly's approval of the capital increase process by way of rights issue is conditional on the approval of the extraordinary general assembly on the proposed capital reduction.

And stressed that it mainly aims to increase the capital to support the company's working capital.

And she added that the eligibility to subscribe will be to the shareholders who own the shares on the day of the extraordinary general assembly, which decided to increase the capital by offering rights shares and whose names appear in the shareholder register. The issuer is with the Depository Center at the end of the second trading day following the date of the Extraordinary General Assembly.