The Board of Directors of the Saudi Cable Company, in its meeting held today, Wednesday, recommended decreasing the company's capital by 89.5% to 7 million riyals instead of 66.73 million riyals.
Saudi Cables said in a statement to the market that the company's board of directors recommended to the extraordinary general assembly to reduce the capital through priority rights shares.
Saudi Cables explained that the reason for reducing the company's capital is to restructure it and amortize (89.5%) of the accumulated losses at a value of 59.73 million riyals.
Saudi Cables added in the statement that the method of capital reduction will be by canceling 5.793 million shares of the company's shares, so that 0.895 shares will be reduced for every one share.
Saudi Cables stated that the capital reduction process has no effect on the company's financial obligations, whether by decrease or increase.
She indicated that the reduction of the company's capital will take place at the end of the second trading day following the Extraordinary General Assembly in which it was decided to reduce the capital.
On the other hand, the board of directors of Saudi Cables recommended, at the same meeting, that after completing the process of reducing the company’s capital, it would be increased through a rights issue of 280 million riyals, so that the capital after the increase would become 287 million riyals, an increase of 4000%.
Saudi Cables indicated that the reason for the capital increase after the reduction process is to restructure the capital and inject new funds to provide working capital so that the company can increase its operational capacity and support its future activity, explaining that the method of increase will be through offering and listing rights shares of 28 million shares. .
