Riyadh — Mubasher: Molan Steel Company’s board of directors has approved a revised financial restructuring plan to address accumulated losses totaling SAR 37.58 million.
The losses represent 141.26% of the company’s SAR 26.60 million capital, according to financial statements for the period that ended on 30 June 2026.
The new strategy replaces a previous plan and aims to raise the share price above SAR 3 following a notification from the Saudi Exchange (Tadawul).
The first phase involves increasing the nominal value of the share from SAR 1 to SAR 10, which will reduce the total number of shares from 26.60 million to 2.66 million without altering the current capital base.
Subsequent stages include a capital increase of up to SAR 15 million through the conversion of debt owed to Dar Al Takamul Holding Company, a major shareholder.
The company also plans to issue new shares representing up to 15% of capital with the suspension of preemptive rights, followed by a capital reduction to extinguish remaining losses.
A final phase will involve a rights issue to further bolster the capital position. Implementation remains subject to regulatory and extraordinary general assembly approvals.
