Riyadh – Mubasher: The board of directors of Saudi Arabian Amiantit Company (Amiantit) has issued a recommendation to cut the company's capital in order to offset accumulated losses.

The company will reduce its capital by 70.2% to SAR 344.517 million instead of SAR 1.155 billion, according to a filing to the Saudi Stock Exchange (Tadawul) on Sunday. 

Amiantit will cancel a total of 34 million shares from its current 115 million shares.

The company affirmed that the decision is still subject to the regulatory approvals, adding that it will have no impact on the company’s liabilities.

In February, Amiantit’s board recommended reducing the company’s capital by 44.53% to SAR 640.63 million in a bid to restructure and offset accumulated losses.

It is worth noting that Amiantit’s loss after Zakat and tax went up to SAR 262.03 million in the second quarter of 2019, compared to SAR 53.65 million in the year-ago period.