Saudi's CMA nods to Raydan Food’s 53% capital cut

Reuters Images/Faisal Al Nasser

The new capital will be distributed over 15.80mln shares, compared to 33.75mln shares prior to the reduction

Staff Writer, Mubasher

September 23, 2022

PHOTO

Riyadh – The Capital Market Authority (CMA) approved the request of Raydan Food Company to reduce its capital by nearly SAR 179.42 million to SAR 158.08 million from SAR 337.50 million.

The new capital will be distributed over 15.80 million shares, compared to 33.75 million shares prior to the reduction, according to a recent bourse disclosure.

Last month, the company’s board recommended a 53.16% capital cut by cancelling 17.94 million shares, equivalent to 1.06 shares for every two issued shares.

Meanwhile, the capital decrease proposal aims to write off 100% of accumulated losses worth SAR 179.41 million as of 30 June 2022.

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