Riyadh — Mubasher: Saudi Printing and Packaging Company’s extraordinary general meeting (EGM) has approved a board recommendation to reduce the capital by 89.42%.
The decision, reached during a meeting on 26 October, with a 65.20% attendance rate, will see the capital drop from SAR 652.07 million to SAR 68.97 million.
The restructuring involves canceling 58.30 million shares, effectively canceling 0.8942 shares for every 1 share held by investors. This move aims to extinguish accumulated losses totaling SAR 583.10 million.
Following the reduction, the total number of outstanding shares will decrease from 65.20 million to 6.89 million.
The company stated that the capital reduction will have no impact on its financial obligations, operations, or organizational performance.
The resolution is effective for shareholders registered with the Securities Depository Center (Edaa) at the end of the second trading day following the assembly date.
The proposal received strong support, with 98.94% of votes cast in favor of the measure. Shareholders also approved amendments to Articles 7 and 8 of the company’s bylaws to reflect the new capital structure.
