Logo ofRaydan Food Co.
Raydan Food Co.’sboard of directors recommended a 53.74% capital cut to SAR 73.14 million from the current SAR 158.08 million to offset accumulated losses, according to a Tadawul statement. 
Capital Cut Details
Current Capital
SAR 158.08 mln
Number of Shares
15.81 mln
New Capital
SAR 73.14 mln
New Number of Shares
7.31 mln
Percentage of Decrease
53.74%
Reason
To restructure capital and offset accumulated losses
Date of Capital Reduction
By the close of the second trading day following the extraordinary general meeting (EGM)that will decide on the capital cut
Method
Writing off 8.5 mln shares at 0.53736 shares for every share held
The board also proposed a subsequent increase in capital via a SAR 155 million rights issue.
Capital Increase Details
Pre-Increase Capital
SAR 73.14 mln
Pre-Increase Number of Shares
7.31 mln
Post Increase Capital
SAR 228.14 mln
Post Increase Number of Shares
22.81 mln
Percentage of Increase
211.93%
Reason
To implement expansion, support working capital and enhance financial position
Record Date
Shareholders registered with Edaa on the second trading day following the EGM, which will be determined later
Raydan pointed out that the proposals are subject to approvals from the related authorities and company shareholders.
Albilad Capital was appointed as financial advisor on both the capital reduction and hike, as well as lead manager and underwriter on the rights issue.
Updates regarding the filing of the capital reduction and capital hike applications with the Capital Market Authority (CMA) will be announced in due course, the statement added.
Logo ofRaydan Food Co.
Raydan Food Co.’sboard of directors recommended a 53.74% capital cut to SAR 73.14 million from the current SAR 158.08 million to offset accumulated losses, according to a Tadawul statement.
Capital Cut Details
Current Capital
SAR 158.08 mln
Number of Shares
15.81 mln
New Capital
SAR 73.14 mln
New Number of Shares
7.31 mln
Percentage of Decrease
53.74%
Reason
To restructure capital and offset accumulated losses
Date of Capital Reduction
By the close of the second trading day following the extraordinary general meeting (EGM)that will decide on the capital cut
Method
Writing off 8.5 mln shares at 0.53736 shares for every share held
The board also proposed a subsequent increase in capital via a SAR 155 million rights issue.
Capital Increase Details
Pre-Increase Capital
SAR 73.14 mln
Pre-Increase Number of Shares
7.31 mln
Post Increase Capital
SAR 228.14 mln
Post Increase Number of Shares
22.81 mln
Percentage of Increase
211.93%
Reason
To implement expansion, support working capital and enhance financial position
Record Date
Shareholders registered with Edaa on the second trading day following the EGM, which will be determined later
Raydan pointed out that the proposals are subject to approvals from the related authorities and company shareholders.
Albilad Capital was appointed as financial advisor on both the capital reduction and hike, as well as lead manager and underwriter on the rights issue.
Updates regarding the filing of the capital reduction and capital hike applications with the Capital Market Authority (CMA) will be announced in due course, the statement added.
