Riyadh – Mubasher: Al Kathiri Holding Company’s board recommended reducing the company’s capital by 91.46% to restructure its financial position.

Under the proposal, capital will be cut from SAR 113.02 million to SAR 9.65 million by canceling 206.74 million shares. This measure aims to extinguish SAR 103.37 million in accumulated losses following the financial results for the period that ended on 30 June 2026.

The reduction will be executed by canceling approximately 0.91462 shares for every one share held, bringing the total outstanding shares down from 226.04 million to 19.29 million.

The company stated the move would have no material impact on its financial or operational obligations.

Following the capital decrease, the board recommended a subsequent capital increase through a SAR 150 million rights issue.

Proceeds from the offering are intended to support the company’s strategic operational plan and facilitate the repayment of its listed sukuk.

Both the capital reduction and the rights issue remain subject to approvals from the Capital Market Authority (CMA) and the extraordinary general assembly.

The company will appoint a financial advisor and submit the formal application files at a later date.

The accumulated losses reached SAR 103.37 million, representing 91.46% of its SAR 113.02 million capital.