Raydan board plans 53.7% capital cut; hike to follow via rights issue

Logo of Raydan Food Co.

Raydan Food Co.’s board of directors recommended a 53.74% capital cut to SAR 73.14 million from the current SAR 158.08 million to offset accumulated losses, according to a Tadawul statement.

 

Capital Cut Details

Current Capital

SAR 158.08 mln

Number of Shares

15.81 mln

New Capital

SAR 73.14 mln

New Number of Shares

7.31 mln

Percentage of Decrease

53.74%

Reason

To restructure capital and offset accumulated losses 

Date of Capital Reduction

By the close of the second trading day following the extraordinary general meeting (EGM) that will decide on the capital cut

Method

Writing off 8.5 mln shares at 0.53736 shares for every share held
 

The board also proposed a subsequent increase in capital via a SAR 155 million rights issue.

 

Capital Increase Details

Pre-Increase Capital

SAR 73.14 mln

Pre-Increase Number of Shares

7.31 mln

Post Increase Capital

SAR 228.14 mln

Post Increase Number of Shares

22.81 mln

Percentage of Increase

211.93%

Reason

To implement expansion, support working capital and enhance financial position 

Record Date

Shareholders registered with Edaa on the second trading day following the EGM, which will be determined later
 

Raydan pointed out that the proposals are subject to approvals from the related authorities and company shareholders.

 

Albilad Capital was appointed as financial advisor on both the capital reduction and hike, as well as lead manager and underwriter on the rights issue.

 

Updates regarding the filing of the capital reduction and capital hike applications with the Capital Market Authority (CMA) will be announced in due course, the statement added.

 

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