Riyadh - Mubasher: Asharqiyah Development announced that its board of directors (BOD) has recommended to reduce the company's capital by 38.80% from SAR 75 million to SAR 45.9 million.

The number of shares before the cut will be reduced from 7.5 million shares to 4.6 million shares, according to the company’s statement to the Saudi Stock Exchange (Tadawul) on Wednsday.

The reduction will be at 1 share per 2.577 shares, through the cancellation of a total of 2.9 million shares, the statement added.

The company attributed the decision to its aim to extinguish most of the accumulated losses.

Asharqiyah also clarified that the capital cut will have no effect on the company’s financial obligations.