Saudi Vitrified Clay obtains regulatory nod for 70% capital reduction

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Riyadh — Mubasher: Saudi Vitrified Clay Pipes Company received approval from the Capital Market Authority (CMA) on 7 September to proceed with a significant capital restructuring.

The regulator authorized the company to reduce its capital from SAR 150 million to SAR 45.43 million, representing a decrease of 69.71%.

Under the approved plan, the number of shares will be reduced from 15 million to 4.54 million ordinary shares. This will be achieved through the cancellation of 10.45 million shares. The primary objective of the transaction is to extinguish accumulated losses amounting to SAR 104.57 million.

The capital reduction remains subject to approval by the company’s extraordinary general assembly and the completion of all relevant regulatory procedures.

The eligibility date for the reduction will be the end of the second trading day following the extraordinary general assembly meeting that approves the measure.

Saudi Vitrified Clay confirmed it will publish a shareholders' circular detailing the proposed method and expected impacts of the reduction ahead of the assembly meeting.

Source: Mubasher Source: {{details.article.source}}