Alhokair Group shareholders approve 51.54% capital cut; Tadawul places 2-day trading halt

Logo of Alhokair Group

Abdulmohsen Alhokair Group for Tourism and Development’s (Alhokair Group) shareholders approved the board’s recommendation to reduce capital by 51.54% from SAR 650 million to SAR 315 million, during the extraordinary general meeting (EGM) held on Oct. 6, according to a bourse filing.

Capital will be cut by cancelling 33.5 million shares to offset 98.93% of accumulated losses, amounting to SAR 338.631 million, as on June 30, 2022.

In a separate statement, the Saudi Exchange (Tadawul) announced that the fluctuation limit will be based on a share price of SAR 21.58 and the outstanding orders will be cancelled.

Additionally, a trading halt will be placed on the stock as per the listing rules for two business days starting today, Oct. 9.

The Securities Depository Center Co. (Edaa) will apply the capital reduction to shareholders’ portfolios, the statement noted.