The shareholders of the Abdul Mohsin Al Hokair Group Company have agreed to the company's capital structure.
According to Arabiya Net, the company said in a statement that the shareholders agreed to the board's recommendation to reduce the company's capital to 343 million riyals, instead of 550 million riyals, and thus reduce the company's capital to 343 million riyals. The number of the company's shares becomes 34.3 million riyals, instead of 55 million riyals, at a reduction rate of 37.6%.
It stated that the reason for the capital reduction was to extinguish the accumulated losses by 207 million riyals, by canceling 20.7 million shares of the company's shares, by reducing one share for every 2.657 shares.
The company added that the reduction date is the end of the second trading day following the Extraordinary General Assembly meeting in which it was decided to reduce the capital, noting that there is no effect from reducing the capital. The company's money on its financial obligations.
Al Hokair Group said that the shareholders also agreed to the Board of Directors' recommendation to increase the capital by offering priority rights, so that the company's capital after the increase became 650 million riyals, instead of From 343 million riyals, through a rights issue of 307 million riyals.
And she added that the number of shares after the increase becomes 650 million riyals, compared to 34.3 million shares before the increase.
The reason for the capital increase is to raise the company's financial solvency, support cash flows, and reduce borrowing rates and costs incurred from them.
The company stated that the percentage increase for each share is 89.5%, and the value of the offering per share and its nominal value is 10 riyals, with 30.7 million shares offered.
