Riyadh - Mubasher: The board of Raydan Food Company has suggested to reduce the capital by 53.16% to SAR 158.08 million from SAR 337.50 million.

The Saudi listed firm would cancel 17.94 million shares, equivalent to 1.06 shares for every two issued shares, according to a recent bourse filing.

Following the capital reduction, the number of shares will stand at 15.80 million shares, compared to 33.75 million shares.

Subject to regulatory approvals, the capital cut recommendation aims to offset 100% of the company’s SAR 179.41 million accumulated losses that were registered during the first half (H1) of 2022.

In the first six months (6M) of 2022, the net losses after Zakat and tax of Raydan Food deepened by 62.39% year-on-year (YoY) to SAR 21.91 million, versus SAR 13.49 million.

The company’s revenues reached SAR 80.38 million in January-June 2022, higher by 21.65% than SAR 66.07 million during the same period a year earlier.

Moreover, the loss per share increased to SAR 0.65 in H1-22 from SAR 0.60 in H1-21.