The Saudi Group’s Board of Directors recommends reducing capital by 10%

Today, the Board of Directors of the Saudi Industrial Investment Group recommended reducing the company’s capital due to its exceeding the company’s needs.
The company said in a statement on the Saudi Tadawul: The capital before the reduction is 7548 billion riyals, while the capital after the reduction will be 6793200000 riyals.
It reported that the percentage of capital reduction is 10%, while the number of shares before the reduction is 754,800,000, while after the reduction it is 6,793,200,000 shares.
She pointed out that the method of reducing capital is by canceling 10% of the number of shares and compensating shareholders accordingly.
She noted that the reduction process would be financed by using the company’s surplus cash resources, while announcing all the details through a shareholders’ circular in accordance with the regulatory procedures.
The capital reduction will not have a material impact on the company’s financial or operational obligations, operations, or performance, and the Board of Directors believes that the reduction will have a positive impact by improving some performance indicators.
It stated that the reduction date is the end of the second trading day following the extraordinary general assembly in which it was decided to reduce the capital.
She stressed that the capital reduction is conditional on obtaining the necessary approvals from the regulatory authorities and the extraordinary general assembly of shareholders.
She noted the later announcement of the appointment of the financial advisor for the reduction process, as well as the announcement of the submission of the capital reduction application file to the Capital Market Authority to obtain its approval, in addition to any other fundamental developments.