SIECO recommends 90% capital cut to offset losses

Saudi Industrial Export Co.’s (SIECO) board of directors has recommended a 90 percent capital reduction to SAR 10.8 million form SAR 108 million, in order to offset accumulated losses, the company said in a statement to Tadawul.

The capital cut is pending regulatory approval as well as the approval of SIECO’s general assembly.

Shareholders’ ownership ratios will remain unchanged after the capital cut, the statement said.

Shareholders of record on the general assembly meeting date, including those registered at the Securities Depository Center two days after, are eligible for the capital cut.

Earlier this year, the Saudi Arabia’s Capital Market Authority (CMA) said Tadawul-listed companies that have accumulated losses exceeding 50 percent of their capital will be forced into liquidation under a new corporate law, unless they fix their finances.