Saudi Arabia's Shams will reduce capital to offset $9.47mln losses

The tourism company's accumulated losses are equivalent to 34% of capital

  
Saudi traders monitor stock information at the Saudi stock market in Riyadh, Saudi Arabia August 25, 2020. Image used for illustrative purpose

Saudi traders monitor stock information at the Saudi stock market in Riyadh, Saudi Arabia August 25, 2020. Image used for illustrative purpose

REUTERS/Ahmed Yosri

Saudi Arabia’s Tourism Enterprise Company (Shams) will reduce capital to extinguish accumulated losses of SAR 35.51 million ($9.47 million).

The move will reduce the company’s capital from SAR 101.5 million to SAR 66.99 million.

In a statement to the Saudi Stock Exchange (Tadawul) the company said following the capital reduction, it would then increase capital by issuing priority shares.

The company is currently working to find and evaluate suitable investment opportunities, the statement said.

(Writing by Imogen Lillywhite; editing by Seban Scaria)

(imogen.lillywhite@refinitiv.com)

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