Riyadh — Mubasher: Molan Steel Company announced that its board of directors has decided to withdraw the application to increase its capital through a rights issue.

The company had previously submitted a file to the Capital Market Authority (CMA) on 6 November 2025 to raise its capital from SAR 26.60 million to SAR 53.20 million by issuing new shares worth SAR 26.60 million.

Molan Steel’s board cited difficulties in proceeding with the current application, noting a requirement to perform a reverse stock split to raise the share price above SAR 3 in accordance with market notifications.

Furthermore, the board identified more effective and faster alternatives to address the company's financial position.

These alternatives have been incorporated into a revised plan to manage accumulated losses, which will be recommended to the Extraordinary General Assembly (EGM).

Molan Steel stated that the withdrawal of the rights issue file will have no impact on its operational activities or existing obligations.

The company will announce the date for the EGM and any further material developments in due course.