Logo of Al Kathiri Holding Co.
The Capital Market Authority (CMA) approved Al Kathiri Holding Co.’s request to reduce its capital by 91.46% from SAR 113.02 million to SAR 9.65 million. 
Accordingly, the number of shares will be cut from 226.04 million to 19.30 million.
The CMA said in a statement that the approval is subject to shareholders’ approval at an extraordinary general meeting (EGM), as well as the completion of relevant regulatory procedures and requirements.
Al Kathiri will publish a report detailing the proposed capital reduction method and its expected impact sufficiently in advance of the EGM to enable shareholders to vote on the proposal.
The CMA clarified that its approval of the company’s request should not be construed as an endorsement of the feasibility of the capital reduction.
Rather, the approval confirms that the company has met the regulatory requirements stipulated under the Capital Market Law and its Implementing Regulations.
According to Argaam data, Al Kathiri’s board recommended in July reducing the company’s capital by 61.27%, from SAR 113.02 million to SAR 43.78 million, to restructure its capital and offset accumulated losses.
On Sept. 6, the board decided to amend its recommendation on the capital reduction following an increase in total accumulated losses based on preliminary financial results for H1 2026.
Capital ReductionHighlights
Current Capital
SAR113.02mln
No.of Shares
226.04mln
No. Capital
SAR 9.65 mln
New No.of Shares
19.30 mlnshares
Percentage of Reduction
91.46%
Method
Cancellation of 206.74 mlncompany shares, with 0.915 shares to be canceled for each share held
Reason
Restructuring the company’s capital to offset accumulated losses
Date of Reduction
The end of the second trading day following the EGM at which the capital reduction is approved
The company’s accumulated losses stood at SAR 103.37 million in H1 2026, equivalent to 91.46% of its SAR 113.02 million capital.
Logo of Al Kathiri Holding Co.
The Capital Market Authority (CMA) approved Al Kathiri Holding Co.’s request to reduce its capital by 91.46% from SAR 113.02 million to SAR 9.65 million.
Accordingly, the number of shares will be cut from 226.04 million to 19.30 million.
The CMA said in a statement that the approval is subject to shareholders’ approval at an extraordinary general meeting (EGM), as well as the completion of relevant regulatory procedures and requirements.
Al Kathiri will publish a report detailing the proposed capital reduction method and its expected impact sufficiently in advance of the EGM to enable shareholders to vote on the proposal.
The CMA clarified that its approval of the company’s request should not be construed as an endorsement of the feasibility of the capital reduction.
Rather, the approval confirms that the company has met the regulatory requirements stipulated under the Capital Market Law and its Implementing Regulations.
According to Argaam data, Al Kathiri’s board recommended in July reducing the company’s capital by 61.27%, from SAR 113.02 million to SAR 43.78 million, to restructure its capital and offset accumulated losses.
On Sept. 6, the board decided to amend its recommendation on the capital reduction following an increase in total accumulated losses based on preliminary financial results for H1 2026.
Capital ReductionHighlights
Current Capital
SAR113.02mln
No.of Shares
226.04mln
No. Capital
SAR 9.65 mln
New No.of Shares
19.30 mlnshares
Percentage of Reduction
91.46%
Method
Cancellation of 206.74 mlncompany shares, with 0.915 shares to be canceled for each share held
Reason
Restructuring the company’s capital to offset accumulated losses
Date of Reduction
The end of the second trading day following the EGM at which the capital reduction is approved
The company’s accumulated losses stood at SAR 103.37 million in H1 2026, equivalent to 91.46% of its SAR 113.02 million capital.
