‎Al Kathiri publishes shareholder circular for 91.5% capital cut

Al Kathiri Holding Co. published a shareholder circular regarding a 91.46% reduction in its capital from SAR 113.02 million to SAR 9.65 million.

Al Kathiri noted that the Capital Market Authority (CMA) approved its capital reduction request on Oct. 21, 2026.

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The company said the capital reduction is subject to approval by an extraordinary general assembly (EGM). If the EGM does not approve the proposed reduction, the process will not proceed.

If the EGM approves the reduction, the Saudi Exchange (Tadawul) will suspend trading in the company’s shares for two consecutive trading sessions, starting on the day following the EGM approval. Trading will then resume at the adjusted price.

The company added that the capital reduction will take effect by adjusting the number of shares held by shareholders who own shares on the EGM date and whose of record in the company’s register at the Securities Depository Center (Edaa) at the end of trading on the second day following the EGM.

Al Kathiri also said that, if the EGM approves the capital reduction, the company will approach the Ministry of Commerce to obtain approval to amend its commercial registration and articles of association. Estidama Financial Business Co. (Estidama Capital) is the financial adviser for the transaction.

Capital Reduction Details

Current Capital

SAR 113.02 mln

Current Number of Shares

226.04 mln

New Capital

SAR 9.65 mln

Number of Shares

19.3 mln

Percentage Cut (%)

91.46%

Method

Writing off 206.74 mln shares, (0.915 shares for every share held)

Reason

Restructuring the company’s capital to offset SAR 103.37 mln in accumulated losses

Reduction Date

Nov. 16, 2026, for shareholders of record and those registered with Edaa at the end of the second trading day following the EGM date

Following completion of the capital reduction procedures, the company plans to increase its capital by SAR 150 million through a rights issue. The proceeds are intended to strengthen its financial position, provide the funding required to implement its operational and strategic plans, and repay its sukuk listed on the Saudi Exchange.

In the circular, Al Kathiri said the management believes that reducing capital to write off accumulated losses, followed by a capital increase to support liquidity and the company’s financial position—subject to the necessary approvals—alongside operational measures to increase revenue, improve margins and reduce costs, would help the company limit losses and improve its financial and operational performance.

However, the company cautioned that there is no guarantee these measures will achieve the targeted results within the expected timeframes. The plan’s success depends on several factors, including obtaining regulatory approvals, completing the proposed capital increase, market conditions and demand in the contracting and building materials sectors, and the company’s ability to implement its operational and investment plans according to approved schedules and budgets.

Shareholders’ Circular

Al Kathiri Holding Co. published a shareholder circular regarding a 91.46% reduction in its capital from SAR 113.02 million to SAR 9.65 million.

Al Kathiri noted that the Capital Market Authority (CMA) approved its capital reduction request on Oct. 21, 2026.

The company said the capital reduction is subject to approval by an extraordinary general assembly (EGM). If the EGM does not approve the proposed reduction, the process will not proceed.

If the EGM approves the reduction, the Saudi Exchange (Tadawul) will suspend trading in the company’s shares for two consecutive trading sessions, starting on the day following the EGM approval. Trading will then resume at the adjusted price.

The company added that the capital reduction will take effect by adjusting the number of shares held by shareholders who own shares on the EGM date and whose of record in the company’s register at the Securities Depository Center (Edaa) at the end of trading on the second day following the EGM.

Al Kathiri also said that, if the EGM approves the capital reduction, the company will approach the Ministry of Commerce to obtain approval to amend its commercial registration and articles of association. Estidama Financial Business Co. (Estidama Capital) is the financial adviser for the transaction.

Capital Reduction Details

Current Capital

SAR 113.02 mln

Current Number of Shares

226.04 mln

New Capital

SAR 9.65 mln

Number of Shares

19.3 mln

Percentage Cut (%)

91.46%

Method

Writing off 206.74 mln shares, (0.915 shares for every share held)

Reason

Restructuring the company’s capital to offset SAR 103.37 mln in accumulated losses

Reduction Date

Nov. 16, 2026, for shareholders of record and those registered with Edaa at the end of the second trading day following the EGM date

Following completion of the capital reduction procedures, the company plans to increase its capital by SAR 150 million through a rights issue. The proceeds are intended to strengthen its financial position, provide the funding required to implement its operational and strategic plans, and repay its sukuk listed on the Saudi Exchange.

In the circular, Al Kathiri said the management believes that reducing capital to write off accumulated losses, followed by a capital increase to support liquidity and the company’s financial position—subject to the necessary approvals—alongside operational measures to increase revenue, improve margins and reduce costs, would help the company limit losses and improve its financial and operational performance.

However, the company cautioned that there is no guarantee these measures will achieve the targeted results within the expected timeframes. The plan’s success depends on several factors, including obtaining regulatory approvals, completing the proposed capital increase, market conditions and demand in the contracting and building materials sectors, and the company’s ability to implement its operational and investment plans according to approved schedules and budgets.

Shareholders’ Circular