Shareholders of Chemanol approved a proposal to cut capital to SAR 150 mln from SAR 674.51 mln.
Shareholders of Methanol Chemicals Co. (Chemanol) approved the board of directors’ recommendation to reduce the company’s capital to SAR 150 million from SAR 674.51 million. 
This decision was made during an extraordinary general meeting (EGM) held on July 14.
Capital Cut Details
Current Capital
SAR 674.51 mln
Current No. of Shares
67.45 mln
New Capital
SAR 150 mln
New No. of Shares
15 mln
Reduction (%)
77.8%
Reason
Offset 90.76% of accumulated losses
Reduction Date
July 14, 2026
Method
Writing off 52.45 mln shares, or about 0.7776 share for every one held
The company said in a statement to Tadawul that the capital reduction will have no impact on its liabilities or total shareholders’ equity. The reduction may result in fractional shares for some shareholders.
Under the proposed mechanism, if a shareholder owns four shares and their entitlement after the capital reduction is less than four shares, those shares will be cancelled and compensated in cash in accordance with the approved procedures.
Shareholders also agreed to transfer SAR 53.4 million from the statutory reserve to offset the remaining accumulated losses.
In addition, they approved filing a liability lawsuit against members of the previous board (2021–2024) who held direct or indirect executive authority and were named in the criminal investigation report related to the two acquisition transactions disclosed by the company on Tadawul on Dec. 7, 2025. They authorized the board to take the necessary legal and regulatory actions in this regard.
Amending Article 4 of the company’s bylaws, relating to its objectives, was also approved.
Shareholders of Chemanol approved a proposal to cut capital to SAR 150 mln from SAR 674.51 mln.
Shareholders of Methanol Chemicals Co. (Chemanol) approved the board of directors’ recommendation to reduce the company’s capital to SAR 150 million from SAR 674.51 million.
This decision was made during an extraordinary general meeting (EGM) held on July 14.
Capital Cut Details
Current Capital
SAR 674.51 mln
Current No. of Shares
67.45 mln
New Capital
SAR 150 mln
New No. of Shares
15 mln
Reduction (%)
77.8%
Reason
Offset 90.76% of accumulated losses
Reduction Date
July 14, 2026
Method
Writing off 52.45 mln shares, or about 0.7776 share for every one held
The company said in a statement to Tadawul that the capital reduction will have no impact on its liabilities or total shareholders’ equity. The reduction may result in fractional shares for some shareholders.
Under the proposed mechanism, if a shareholder owns four shares and their entitlement after the capital reduction is less than four shares, those shares will be cancelled and compensated in cash in accordance with the approved procedures.
Shareholders also agreed to transfer SAR 53.4 million from the statutory reserve to offset the remaining accumulated losses.
In addition, they approved filing a liability lawsuit against members of the previous board (2021–2024) who held direct or indirect executive authority and were named in the criminal investigation report related to the two acquisition transactions disclosed by the company on Tadawul on Dec. 7, 2025. They authorized the board to take the necessary legal and regulatory actions in this regard.
Amending Article 4 of the company’s bylaws, relating to its objectives, was also approved.
