Alhokair Group board recommends 46.15% capital decrease to amortize accumulated losses

Logo of Alhokair Group

The board of directors of Abdulmohsen Alhokair Group for Tourism and Development (Alhokair Group) recommended a capital decrease of 46.15% from SAR 650 million to SAR 350 million, according to a bourse filing.

The recommendation aims to restructure the company’s capital to amortize 98.79% of accumulated losses as on March 31, 2022, the statement added.

Alhokair Group said that the capital reduction will not have any substantial impact on its obligations, noting that the reduction of capital and the number of shares is pending the approval of relevant authorities and the company's extraordinary general assembly.

Yaqeen Capital has been appointed as a financial advisor to manage the company's capital decrease and take all related procedures, the company said.

An announcement will be made upon submitting the capital decrease application to the Capital Market Authority (CMA) for approval and upon any other future developments, the statement noted.