Alhokair Group eyes 46% capital cut to amortise accumulated losses

Reuters Images

The number of shares will decrease from 65mln shares to 35mln shares after the capital cut

Staff Writer, Mubasher

June 14, 2022

PHOTO

Riyadh – The board of Abdulmohsen Alhokair Group for Tourism and Development (Alhokair Group) has recommended reducing the capital from SAR 650 million to SAR 350 million.

The 46.15% capital reduction proposal aims to offset 98.79% of the company’s SAR 303.66 million accumulated losses that were registered in the first quarter (Q1) of 2022.

The Saudi listed company will cancel 30 million shares, equivalent to three shares for every 6.5 issued shares, according to a bourse filing on Monday.

The number of shares will decrease from 65 million shares to 35 million shares after the capital cut.

During the first three months (3M) of 2022, Alhokair Group suffered net losses after Zakat and tax of SAR 31.37 million, lower by 47.80% than SAR 60.10 million during the same period a year earlier.

Disclaimer: The content of this article is syndicated or provided to this website from an external third party provider. We are not responsible for, and do not control, such external websites, entities, applications or media publishers. The body of the text is provided on an “as is” and “as available” basis and has not been edited in any way. Neither we nor our affiliates guarantee the accuracy of or endorse the views or opinions expressed in this article. Read our full disclaimer policy here.