Tihama reduces its capital by 42.9% before offering rights issue

Thama Advertising, Public Relations and Marketing Company, Tihama, decided to reduce and subsequently increase the company's capital.

According to Arabiya Net, the company said in a statement that the capital before the reduction is 175 million riyals, and after the reduction it is 100 million riyals, with a reduction rate of 42.9%.

The number of Tihama shares for advertising, public relations and marketing, before the capital reduction, is 17.5 million shares, compared to 100 million shares after the reduction, by canceling 7.5 million shares.

Tihama explained that the reason for the capital reduction is to restructure the police's capital to offset the accumulated losses.

The company’s board of directors also recommended to the extraordinary general assembly, after the capital reduction process, to increase the company’s capital through a rights issue of 50 million riyals, so that the capital after the increase becomes 150 million riyals, instead of 100 million riyals, with an increase of 50%.

The capital increase will be by adding 5 million shares, indicating that the reason for the capital increase is the payment of government financial obligations.