Riyadh – Mubasher: Al Kathiri Holding Company has announced a board-level recommendation to significantly decrease its share capital as part of a strategic financial restructuring.
The proposal, aimed at extinguishing the company’s accumulated losses, involves a capital reduction of 61.27%, which would see the total number of outstanding shares drop from 226.04 million to approximately 87.55 million.
The recommendation was finalized during a board of directors meeting held on 1 July 2026, according to a bourse filing on the Saudi Exchange (Tadawul).
The board proposed lowering the company's paid-up capital from SAR 113 million to SAR 43.77 million. This adjustment represents a total capital reduction of SAR 69.24 million.
The reduction is slated to be executed through the cancellation of 138.48 million shares. Under the current proposal, the company will cancel approximately 0.613 shares for every one share currently held by investors.
The primary driver behind this capital restructuring is the necessity to offset accumulated losses that have impacted the company’s balance sheet, thereby improving the financial position of the firm.
Al Kathiri Holding emphasized that the proposed capital decrease is primarily a balance sheet adjustment and is not expected to have a material impact on the company’s financial, operational, or regulatory obligations.
The company’s day-to-day operations and overall performance are expected to continue without significant disruption resulting from this specific corporate action.
Furthermore, the company confirmed that its existing liabilities remain unaffected by the change in the equity structure, and the organizational performance will maintain its current trajectory.
The implementation of this capital reduction remains subject to several layers of official approval. The recommendation must first receive the endorsement of the Capital Market Authority (CMA) and other relevant official bodies in Saudi Arabia.
Following regulatory clearance, the proposal will be presented to the company’s Extraordinary General Assembly for a final vote by the shareholders.
The effective date for the capital reduction will be the end of the second trading day following the date of the Extraordinary General Meeting (EGM) in which the resolution is approved.
As of the date of the disclosure, Al Kathiri Holding has not yet appointed a financial advisor to manage the process.
The company stated that it will make further announcements to the public regarding the appointment of an advisor and the subsequent filing of the capital reduction application with the CMA once those milestones are reached.
This move follows standard procedures for Saudi-listed companies seeking to reset their capital base in light of accumulated financial pressures.
By reducing the share count and the total capital value, the company aims to align its capital structure with its current financial realities while ensuring compliance with local regulatory frameworks governing companies with significant accumulated losses.
The final execution of the plan remains contingent on the upcoming shareholder vote and the formal approval of the Saudi market regulators.
