Logo ofMolan Steel Co.
Molan Steel Co. approved yesterday, Oct. 4, a revised plan to address its accumulated losses and financial restructuring, replacing the previously announced plan. 
The updated plan aims to offset accumulated losses, increase capital, and address the decline in the company’s per-share par value below SAR 1. It will be submitted to the extraordinary general meeting (EGM) for approval, according to a statement to Tadawul today, Oct. 5.
Molan said accumulated losses reached SAR 37.58 million, or 141.26% of its SAR 26.6 million capital, per the condensed interim financial statements for H1 2026.
The revised plan is made up of six phases:
Stage
Details
1
Withdraw an earlier capital increase file through a rights issue that has been submitted to the Capital Market Authority (CMA), as resolved by the board on Aug. 30.
2
Increase the Molan’s stock par value from SAR 1 to SAR 10 and reduce the number of shares from 26.6 million to 2.66 million, without changing the company’s capital, in line with the board’s recommendation announced on Sept. 6.
3
Increase capital by converting debt owed to Dar Al-Takamol Holding Co. of up to SAR 15 million under the interest-free loan agreement signed in May.
The amount will be limited to the outstanding debt at the time of implementation, with preemptive rights suspended.
Dar Al-Takamol Holding is a major shareholder and related party.
4
Increase capital by issuing shares with preemptive rights suspended, for an amount not exceeding 15% of capital.
5
Reduce capital to offset accumulated losses outstanding at the time by canceling a corresponding number of shares, without changing the shares’ par value.
6
Increase capital through a rights issue, representing a new capital top-up plan, the value and terms of which are yet to be determined.
The company said each stage requiring EGM approval will be presented for a go-ahead at the relevant time. Implementation will be subject to CMA approval and completion of regulatory requirements, with the company to announce each stage in due course.
According to Argaam data, Molan received a notice in August that its average closing share price had fallen below the minimum threshold, with a three-month period to take corrective measures starting Aug. 3, in accordance with the CMA’s listing rules.
The company said at the time that the measures would include a share consolidation to bring the closing share price to at least SAR 3 and convening an EGM to vote on the board’s recommendation to consolidate the shares, unless the closing share price rose to SAR 3 or above during the period.
Logo ofMolan Steel Co.
Molan Steel Co. approved yesterday, Oct. 4, a revised plan to address its accumulated losses and financial restructuring, replacing the previously announced plan.
The updated plan aims to offset accumulated losses, increase capital, and address the decline in the company’s per-share par value below SAR 1. It will be submitted to the extraordinary general meeting (EGM) for approval, according to a statement to Tadawul today, Oct. 5.
Molan said accumulated losses reached SAR 37.58 million, or 141.26% of its SAR 26.6 million capital, per the condensed interim financial statements for H1 2026.
The revised plan is made up of six phases:
Stage
Details
1
Withdraw an earlier capital increase file through a rights issue that has been submitted to the Capital Market Authority (CMA), as resolved by the board on Aug. 30.
2
Increase the Molan’s stock par value from SAR 1 to SAR 10 and reduce the number of shares from 26.6 million to 2.66 million, without changing the company’s capital, in line with the board’s recommendation announced on Sept. 6.
3
Increase capital by converting debt owed to Dar Al-Takamol Holding Co. of up to SAR 15 million under the interest-free loan agreement signed in May.
The amount will be limited to the outstanding debt at the time of implementation, with preemptive rights suspended.
Dar Al-Takamol Holding is a major shareholder and related party.
4
Increase capital by issuing shares with preemptive rights suspended, for an amount not exceeding 15% of capital.
5
Reduce capital to offset accumulated losses outstanding at the time by canceling a corresponding number of shares, without changing the shares’ par value.
6
Increase capital through a rights issue, representing a new capital top-up plan, the value and terms of which are yet to be determined.
The company said each stage requiring EGM approval will be presented for a go-ahead at the relevant time. Implementation will be subject to CMA approval and completion of regulatory requirements, with the company to announce each stage in due course.
According to Argaam data, Molan received a notice in August that its average closing share price had fallen below the minimum threshold, with a three-month period to take corrective measures starting Aug. 3, in accordance with the CMA’s listing rules.
The company said at the time that the measures would include a share consolidation to bring the closing share price to at least SAR 3 and convening an EGM to vote on the board’s recommendation to consolidate the shares, unless the closing share price rose to SAR 3 or above during the period.
