Logo of Alhokair Group

Shareholders of Abdulmohsen Alhokair Group for Tourism and Development (Alhokair Group) approved a 37.64% capital cut to SAR 343 million from SAR 550 million by cancelling 20.7 million shares, during the extraordinary general assembly meeting (EGM) held on July 8, the insurer said in a statement on Tadawul.

 

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 EGM

 

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

 

Key Figures of the Capital Increase

Capital After Reduction

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

 

In a separate statement, the Saudi Exchange (Tadawul) announced Alhokair Group’s daily trading fluctuation limit will be based on a share price of SAR 24.12.

 

All outstanding orders will be cancelled. Trading on the company’s shares will be suspended for two business days starting today, July 11.

 

The Securities Depository Center (Edaa) will complete the corporate action process and trading suspension will be lifted by the close of trading tomorrow, July 12.

 

Moreover, Alhokair Group’s rights will be deposited into applicable investor’s portfolios on July 13.

 

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