Methanol Chemical compounds Firm emblem – Chemanol
Really useful by the board of administrators of the corporate Methanol Chemical compounds (Chemanol) Yesterday, the capital was decreased from 674.5 million riyals to 150 million riyals, by 77.8%, to restructure the corporate’s capital to extinguish the collected losses. As proven within the desk beneath:
|
Particulars of capital discount
|
|
|
Present capital
|
674.51 million riyals
|
|
Variety of shares
|
67.45 million shares
|
|
Capital after discount
|
150.00 million riyals
|
|
Variety of shares after dilution
|
15.00 million shares
|
|
Discount share
|
77.8 %
|
|
Cause for discount
|
Restructuring the corporate’s capital to extinguish an quantity of 535.55 million riyals of collected losses
|
|
Low cost date
|
The tip of the second buying and selling day following the extraordinary common meeting by which it was determined to scale back the capital
|
|
Discount methodology
|
52.45 million shares had been delisted, at a charge of 77.8% for each excellent share.
|
The corporate mentioned in a press release on Tadawul that there isn’t any materials impression of the capital discount on the corporate’s obligations, operations, operational, monetary, or organizational efficiency. The possession share of any shareholder is not going to change because of the capital discount.
The corporate acknowledged that on October 2, 2025, it appointed MEFIC Capital as a monetary advisor to handle the capital discount file. Stating that it’s going to announce when submitting a capital discount request to the Capital Market Authority, along with some other developments in keeping with the Authority’s rules.
She added that the capital discount is conditional on the approval of the official authorities and the extraordinary common meeting.
She indicated that the corporate will use an quantity equal to 11.04 million riyals from the statutory reserve (which represents 12.4% of the overall reserve) to cowl the remaining a part of 1.6% of the collected losses, along with canceling the shares as described above, after acquiring the mandatory regulatory approvals..
She acknowledged that decreasing capital is a necessary step within the firm’s technique to strengthen its monetary place and enhance its operational and monetary efficiency, which strengthens its place for future progress and maximizes worth for shareholders..
She defined that the corporate’s collected losses are primarily as a result of following causes:
Recording losses ensuing from a lower within the worth of the belongings of the 2 corporations acquired throughout the earlier board interval (Aldar Chemical compounds Firm and Worldwide Chemical Industries Firm) estimated at roughly 374 million riyals, along with 127 million riyals, which is because of writing off your complete quantity of goodwill for the 2 corporations..
– The monetary outcomes had been affected by some provisions associated to the acquired corporations, along with the group’s working losses, on account of market situations.
