Thimar board proposes 74% capital cut; hike to follow via SAR 195M rights issue

Logo of Thimar Development Holding Co.

Thimar Development Holding Co.’s board of directors recommended today, Nov. 30, a 74% capital cut from SAR 250 million to SAR 65 million, according to a Tadawul filing.

Capital Cut Details
Current capital	SAR 250 mln
Number of Shares	25 mln
New Capital	SAR 65 mln
New Number of Shares	6.5 mln
Percentage Decrease	74%
Reason	To restructure capital and offset accumulated losses
Date of Capital Reduction	By the close of the second trading day following the EGM that will decide on the capital cut
Method	Writing off 18.5 mln shares

Wasatah Capital was appointed as financial advisor on both the capital reduction and hike as well as underwriter on the capital top-up. Updates regarding the filing of the capital reduction application with the Capital Market Authority (CMA) will be duly revealed, Thimar added.

Meanwhile, the board recommended to later increase capital via a SAR 195 million rights issue.

Details of Capital Increase via Rights Issue
Capital after Reduction	SAR 65 mln
Number of shares	6.5 mln
New Capital	SAR 260 mln
New Number of Shares	26 mln
Percentage Decrease	300%
Method	Through a SAR 195 mln rights issue
Reason	To maximize the company’s expansion capacity in investments to support operations as per the financial restructuring plan
Eligibility	Shareholders of record and those registered with Edaa on the second trading day after the EGM

The extraordinary general assembly’s (EGM) nod to raising capital via a rights issue is conditional on the EGM approval of the proposed capital reduction.

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