‎Saudi Cable board proposes 74.6% capital cut, SAR 400 mln rights issue

‎Saudi Cable board proposes 74.6% capital cut, SAR 400 mln rights issue

Saudi Cable Co.’s (SCC) board of directors recommended today, June 2, a 74.6% capital reduction to SAR 66.73 million from SAR 262.31 million to restructure the company’s capital and offset its accumulated losses, according to a statement to Tadawul.

There is no significant impact of the capital reduction on the company's financial obligations, the cable manufacturer added.

The planned capital reduction is subject to the approval of the competent authorities and the company’s EGM.

Further details will be announced upon appointing a financial advisor and submitting the capital cut application to the Capital Market Authority (CMA), SCC noted.

Moreover, the board also recommended a SAR 400 million rights issue to raise the company’s capital when the planned reduction is complete.

Shareholders of record by the close of trading on the second trading day after the EGM date will be eligible for the rights issue. The EGM date will be set later, the company concluded.

For More IPOs