Riyadh – Mubasher: The board of Saudi Cable Company has proposed, on 19 October, to decrease then increase the capital by 89.50% and 4,000%, respectively.
The board aims to shrink the capital by cancelling 5.97 million shares, equivalent to 0.895 share for every one owned share. Therefore, the new capital will stand at SAR 7 million distributed over 700,000 shares, compared to SAR 66.72 million and 6.67 million shares before the cut.
Following the approvals of relevant official authorities and the extraordinary general meeting (EGM) to restructure the capital, Saudi Cable will be able to offset around SAR 59.72 million which accounts for 89.50% of its accumulated losses, according to a bourse filing.
It is noteworthy to mention that the capital decrease process will not impact the firm’s financial obligations.
Furthermore, the board recommended a capital hike through a SAR 280 million rights issue to secure working capital that can boost operational capacity and support the company’s future activities.
The new capital after the raise will amount to SAR 287 million distributed over 28.70 million shares.
Earlier in 2022, Saudi Cable’s board suggested a 74.60% capital cut, to be followed by a 599% capital increase to SAR 466.72 million.
