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Saudi Amiantit lowers planned capital hike to SAR 120m

Saudi Amiantit lowers planned capital hike to SAR 120m
The board also proposed a 41.95% capital cut
AMIANTIT
2160
-1.07% 37.00 -0.40

Riyadh – Mubasher: The Board of Directors of Saudi Arabian Amiantit Company has amended its previous recommendation to raise the company’s capital through a rights issue.

The board is now proposing a SAR 120 million capital increase instead of a previous SAR 300 million, according to a bourse statement on Sunday.

Meanwhile, the board proposed to cut the company’s capital by 41.95% to offset accumulated losses, before enacting the said capital increase, subject to the approval of the extraordinary general meeting (EGM). The new capital will reach SAR 200 million when compared to a current SAR 344.5 million.

Moreover, the company’s shares will be reduced following the reduction process and to 20 million from 34.45 million, after the cancellation of 14.45 million shares.

Saudi Amiantit further noted that the capital cut aims to amortise accumulated losses of SAR 144.5 million.

The capital cut will not affect the company’s financial obligations, the statement said.

It is worth noting that in the first quarter (Q1) of 2020, the net losses of the company widened by 225.2% on an annual basis.