Riyadh - Mubasher: The board of Red Sea International Company has recommended a capital reduction by cancelling 29.06 million shares, equivalent to reducing one share for every 2.06 shares, to offset the accumulated losses.

The Saudi listed company will decrease the capital by 48.44% from SAR 600 million to SAR 309.38 million, according to a recent bourse filing.

The new capital will be distributed over 30.93 million shares, compared to 60 million prior to the cut.

Moreover, the board suggested to increase the capital by 48.48% through a rights issue of SAR 150 million, adding 15 million shares.

After the raise transaction, the capital will amount to SAR 459.38 million distributed over 45.93 million shares, compared to SAR 309.38 million and 30.93 million shares prior to the increase.

In 2021, Red Sea International incurred net losses after Zakat and tax worth SAR 130.40 million, an annual drop of 17.62% from SAR 158.30 million.