Logo ofMethanol Chemicals Co. (Chemanol)
Methanol Chemicals Co.’s (Chemanol) board of directors recommended, on Oct. 8, a 77.8% capital cut to SAR 150 million from SAR 674.5 million, to restructure capital and offset accumulated losses. 
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
To restructure the company’s capital and offset SAR 535.55 million in accumulated losses
Date
End of the second trading day following the extraordinary general meeting’s
(EGM) approval
Method
Writing off 52.45 million shares at a rate of 0.778 share for each existing share.
Chemanol said in a Tadawul statement that the capital reduction will not affect its obligations, operations, or financial and regulatory performance. Shareholders’ ownership percentages will also remain unchanged.
Chemanol appointed MEFIC Capital on Oct. 2 as its financial advisor for the capital reduction and said it will announce the submission of the request to the Capital Market Authority (CMA) and provide updates in line with CMA regulations.
The reduction remains subject to approval from the relevant authorities and the extraordinary general meeting (EGM).
Chemanol will use SAR 11.04 million from its statutory reserve, equal to 12.4% of the total, to cover the remaining 1.6% of accumulated losses, in addition to canceling shares after obtaining all required approvals.
The company said the move is a key step to strengthen its financial position, improve performance, and support future growth while maximizing shareholder value.
Chemanol attributed its accumulated losses mainly to an SAR 374 million asset impairment related to ADDAR Chemicals Co. (ACC) and Global Co. for Chemical Industries (GCI), and an additional SAR 127 million from writing off goodwill. Results were also affected by provisions and operating losses due to market conditions.
Logo ofMethanol Chemicals Co. (Chemanol)
Methanol Chemicals Co.’s (Chemanol) board of directors recommended, on Oct. 8, a 77.8% capital cut to SAR 150 million from SAR 674.5 million, to restructure capital and offset accumulated losses.
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
To restructure the company’s capital and offset SAR 535.55 million in accumulated losses
Date
End of the second trading day following the extraordinary general meeting’s
(EGM) approval
Method
Writing off 52.45 million shares at a rate of 0.778 share for each existing share.
Chemanol said in a Tadawul statement that the capital reduction will not affect its obligations, operations, or financial and regulatory performance. Shareholders’ ownership percentages will also remain unchanged.
Chemanol appointed MEFIC Capital on Oct. 2 as its financial advisor for the capital reduction and said it will announce the submission of the request to the Capital Market Authority (CMA) and provide updates in line with CMA regulations.
The reduction remains subject to approval from the relevant authorities and the extraordinary general meeting (EGM).
Chemanol will use SAR 11.04 million from its statutory reserve, equal to 12.4% of the total, to cover the remaining 1.6% of accumulated losses, in addition to canceling shares after obtaining all required approvals.
The company said the move is a key step to strengthen its financial position, improve performance, and support future growth while maximizing shareholder value.
Chemanol attributed its accumulated losses mainly to an SAR 374 million asset impairment related to ADDAR Chemicals Co. (ACC) and Global Co. for Chemical Industries (GCI), and an additional SAR 127 million from writing off goodwill. Results were also affected by provisions and operating losses due to market conditions.
