Alhokair Group shareholders to vote on 37.64% capital cut, SAR 307 mln rights issue on July 8

Shareholders of Abdulmohsen Alhokair Group for Tourism and Development are set to vote on a 37.64% capital reduction from SAR 550 million to SAR 343 million, through writing off 207 million shares, to offset accumulated losses, during an extraordinary general meeting (EGM) scheduled for July 8.

Key Figures of the Capital Cut
Current Capital	SAR 550 mln
Number of shares	55 mln
Reduction (%)	37.64%
New Capital	SAR 343 mln
New number of shares	34.3 mln
Method	Writing off 20.7 million shares (1 share for every 2.657 shares)
Reason	Restructuring the company’s capital to offset accumulated losses reaching SAR 207 million as on Sep. 30, 2020
Date	The second trading day after the company’s extraordinary general meeting (EGM)

The capital reduction proposal will not impact the company’s liabilities and is subject to the approval of the competent authorities and the upcoming general meeting, Alhokair said in a bourse statement.

On the other hand, shareholders will also vote on increasing capital through SAR 307 million rights issue, to boost the company’s solvency and reduce borrowing rates.

Key Figures of the Capital Increase
Current Capital	SAR 343 mln
Number of shares	34.3 mln
Increase (%)	89.5%
New Capital	SAR 650 mln
New number of shares	65 mln
Method	Offering and listing 30.7 mln rights shares

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Alhokair Group recommends 37.64% capital cut, followed by SAR 307 mln rights issue

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