Saudi Cables shareholders approve 27% capital decrease; fluctuation limits set

Riyadh - Mubasher: The Saudi Cable Company’s extraordinary general meeting (EGM) approved, on 20 February, the board’s recommendation to cut the capital by 27.26% to SAR 262.31 million from SAR 360.61 million.

The number of shares should be reduced to 26.23 million shares, versus 36.06 million shares before the decrease, according to a bourse disclosure on Monday.

The capital cut will be carried out by cancelling one share for every 3.6684 shares at a total amount of 9.83 million shares.

The shareholder’s decision to shrink the capital aims to write off the SAR 98.30 million accumulated losses as of 31 March 2021.

The Saudi listed company pointed out that the transaction will not have any impact on its financial obligations.

In the meantime, the Saudi Exchange (Tadawul) announced that the fluctuation limits for Saudi Cable’s stock will be based on a share price of SAR 25.70 and the outstanding orders will be cancelled.

Tadawul noted that trading on the company’s shares will be suspended until 23 February.

It is noteworthy to mention that as of 31 January 2022, Saudi Cable’s accumulated losses stood at SAR 227.20 million, representing 63.01% of the capital.