Saudi Paper gets regulatory approval on capital cut

The Capital Market Authority (CMA) has approved Saudi Paper Manufacturing Company’s request to reduce capital from SAR 245 million to SAR 92 million, the company said in a bourse statement.

Thus, share capital will be cut from 24.5 million shares to 9.2 million shares.

The capital cut is subject to the approval of the company’s extraordinary general meeting.

Last week, the company submitted a capital reduction request to the Capital Market Authority.

The company’s board of directors recently amended its recommendation to cut capital by 62.45 percent to SAR 92 million to offset losses in Q3 2019, Argaam reported.

Last month, SPMC’s board of directors recommended capital hike through SAR 150 million rights issue following a capital cut.