Saudi Amiantit’s EGM approves capital cut, increase

Riyadh - Mubasher: The Saudi Arabian Amiantit Company’s extraordinary general meeting (EGM) approved reducing the company’s capital from SAR 344.517 million to SAR 200 million and then raising it by 60% via a rights issue.

Hence, the number of shares will be cut from 34.451 million to 20 million. This comes in a bid to amortise 96.61% of the firm’s accumulated losses, according to a bourse filing on Wednesday.

In addition, the EGM agreed to raise the capital through a rights issue valued at SAR 120 million. The new capital will amount to SAR 320 million, compared to a previous SAR 200 million.

The capital increase aims to provide working capital and help the company pay loans and suppliers’ dues.

In a separate statement, the Saudi bourse said Saudi Amiantit's stock will be suspended from trading for two business days starting as of 2 December 2020. The fluctuation limits for the company will be based on a share price of SAR 23.94 and the outstanding orders will be cancelled.

Rights issue and new shares subscription period will start on 7 December. End date of rights issue trading period and new shares subscription period will be on 14 and 17 December, respectively.

In October 2020, the Capital Market Authority (CMA) approved Saudi Amiantit's request to reduce its capital and then increasing it through a rights issue.

Mubasher Contribution Time: 02-Dec-2020 06:34 (GMT)
Mubasher Last Update Time: 02-Dec-2020 06:34 (GMT)