Chemanol’s EGM approves capital cut, rejects raise; fluctuation limit announced

Chemanol will cancel one share for every 2.269 owned shares

Riyadh – The shareholders of Methanol Chemicals Company (Chemanol) approved, during the extraordinary general meeting (EGM), a 44% capital reduction by cancelling 53.14 million shares.

Chemanol will cancel one share for every 2.269 owned shares, according to a bourse filing on Tuesday.

Following the cut, the new capital will stand at SAR 674.5 million distributed over 67.45 million shares, compared to SAR 1.2 billion and 120.6 million shares prior to the reduction.

The listed company aims to write off its accumulated losses that total SAR 531.49 million through the capital cut.

In addition, the EGM disapproved to increase the capital to SAR 1.15 billion from SAR 674.5 million through a rights issue of 48 million shares.

In a separate disclosure, the Saudi Exchange (Tadawul) announced that the fluctuation limit for Chemanol’s stock will be based on a share price of SAR 25.10.

Accordingly, the outstanding orders will be cancelled.

Last December, Chemanol submitted a request to the Saudi Capital Market Authority (CMA) to decrease then raise its capital.

Source: Mubasher

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