SIDC eyes restructuring capital to lower accumulated losses

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Saudi Industrial Development Company (SIDC) submitted an application file, on 13 June, to the Capital Market Authority (CMA) to reduce its capital by SAR 265 million.

The new capital will stand at SAR 135 million distributed over 13.50 million shares, compared to SAR 400 million and 40 million shares, prior to the decrease.

The board members proposed the 66.25% reduction, on 27 May, to restructure the company’s capital and offset accumulated losses.

Furthermore, the Saudi firm will increase its capital by offering rights issue shares valued at SAR 165 million to implement its operational plans, support working capital, and strengthen its financial position.

Meanwhile, the transaction is subject to regulatory approvals, including the extraordinary general meeting (EGM).

As of 31 March 2024, SIDC reported accumulated losses worth SAR 268.87 million, representing 67.22% of the capital.