The company said that this step aims to “restructure the company’s capital to extinguish 98.93 percent of the accumulated losses,” amounting to about 338.6 million riyals (90 million dollars) as on June 30.
According to the statement, the company’s capital of 650 million riyals before the reduction will become 315 million riyals after the reduction, and the number of shares after the reduction will become 31.5 million shares, compared to 65 million before the reduction.
A previous recommendation issued by the Board of Directors in June had suggested reducing the capital by 46.15 percent only to 350 million riyals, which was increased in the new recommendation.
Today’s statement indicated that the capital reduction of Abdul Mohsen Al Hokair Group for Tourism and Development Company, will be by canceling 33.5 million shares of the company’s shares, as 67 shares will be canceled for every 130 shares of the company’s issued shares.
On August 25, the company announced that its total accumulated losses amounted to 52.1 percent of the capital.
In the first half of this year, the company’s losses fell to about 66.3 million riyals, compared to losses of about 130 million riyals, as a result of the increase in revenues with the lifting of the precautionary measures related to the Corona epidemic completely, which contributed to an increase in the revenues of the hotel and entertainment sector.
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