Riyadh - Mubasher: Raydan Food Company has closed its Jeddah - Kilo 14 branch, as per the decisions made by competent authorities to remove some neighborhoods that fall within its scope.

Sales of the closed branch account for 5.50% of the company’s total sales, Raydan noted, adding that it will take necessary measures to address the relevant financial effect during 2022, according to a bourse disclosure on Sunday.

In a separate statement, the Tadawul-listed firm said it submitted a capital cut request to the Saudi Capital Market Authority (CMA) on 8 September 2022.

Last month, the company’s board of directors proposed reducing the capital by 53.16% to SAR 158.08 million from SAR 337.50 million.

Hence, the Saudi firm would cancel 17.94 million shares, equivalent to 1.06 shares for every two issued shares. Following the capital reduction, the number of shares will stand at 15.80 million shares.

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 H1-22, 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.