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

Logo of Saudi Cable Co.

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.

Capital Reduction Highlights
Current Capital	SAR 262.31 mln
Number of Shares	26.23 mln
Reduction (%)	74.6% (0.75 share for every share)
New Capital	SAR 66.73 mln
Reason	Restructuring SCC’s capital to fully offset its accumulated losses amounting to SAR 195.58 million as of March 31, 2022
Date	By the close of the second trading day after the company’s extraordinary general meeting (EGM) date
Method	Writing off 19.56 mln shares

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.

Capital Increase Highlights
Current Capital	SAR 66.73 mln
Number of Shares	6.67 mln
New Number of Shares	46.67 mln
Percentage Increase (%)	599%
Reason	Restructuring SCC’s capital and injecting fresh funds to boost working capital and allow the company to increase its operating capacity and support future business
Method	Offering 40 mln rights issue shares

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.

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