Al-Baha gets CMA nod on 26.5% capital cut

Logo of Al-Baha Investment and Development Co.

The Capital Market Authority (CMA) approved Al-Baha Investment and Development Co.’s request to reduce its capital from SAR 297 million to SAR 218.3 million, the market regulator said in a statement today, Oct. 2.

Accordingly, Al-Baha's share capital will decrease from 2.97 million to 2.18 million shares.

This approval is conditional on the company's extraordinary general meeting’s (EGM) approval and completion of the necessary procedures in relation to the applicable regulations, the CMA added.

The company will publish a disclosure document to its shareholders related to the proposed method of capital reduction and the expected impact from the capital cut within sufficient time prior to the EGM to enable shareholders to vote on the move.

In September, Al-Baha's board of directors recommended a 26.5% capital cut from SAR 297 million to SAR 218.3 million. This is in a bid to offset SAR 78.71 million of its accumulated losses, totaling SAR 79.97 million as of June 30, 2024.

Post-capital reduction, the company's accumulated losses would stand at SAR 1.26 million, or 0.58% of the new SAR 218.3 million capital, according to Argaam’s data.