Raydan Food Co.’s board amended today, Oct. 1, its previous capital reduction recommendation, increasing the proposed reduction to 80% from 70%, following higher accumulated losses in the company’s preliminary financial results for the period ended June 30.
The board recommended reducing capital to SAR 14.63 million from SAR 73.14 million by lowering the nominal value of the shares, as shown in the table below.
Capital Cut Details
Current capital
SAR 73.14 mln
No. of shares
7.31 mln shares
Capital after reduction
SAR 14.63 mln
No. of shares after reduction
7.31 mln shares
Reduction ratio
80%
Reason
Restructuring the company’s capital to offset SAR 58.51 mln of accumulated losses
Effective date
End of the second trading day following the extraordinary general meeting (EGM) approving the capital reduction
Method
Reducing the share par value from SAR 10 to SAR 2
According to a statement on Tadawul, The board also maintained its previous recommendation to increase capital through a SAR 105 million rights issue, with no changes.
The company said the amendment to the capital reduction recommendation came in light of the increase in total accumulated losses reported in its preliminary financial results for the period ended June 30.
Raydan’s board had previously recommended in May reducing capital by 70% to SAR 21.94 million from SAR 73.14 million by lowering the nominal value per share to SAR 3 from SAR 10, to restructure the company’s capital and offset accumulated losses.
In August, the company announced that its accumulated losses had reached SAR 78.3 million, representing 107% of its capital, based on its interim financial results for the period ended June 30, 2026.
Raydan Food Co.’s board amended today, Oct. 1, its previous capital reduction recommendation, increasing the proposed reduction to 80% from 70%, following higher accumulated losses in the company’s preliminary financial results for the period ended June 30.
The board recommended reducing capital to SAR 14.63 million from SAR 73.14 million by lowering the nominal value of the shares, as shown in the table below.
Capital Cut Details
Current capital
SAR 73.14 mln
No. of shares
7.31 mln shares
Capital after reduction
SAR 14.63 mln
No. of shares after reduction
7.31 mln shares
Reduction ratio
80%
Reason
Restructuring the company’s capital to offset SAR 58.51 mln of accumulated losses
Effective date
End of the second trading day following the extraordinary general meeting (EGM) approving the capital reduction
Method
Reducing the share par value from SAR 10 to SAR 2
According to a statement on Tadawul, The board also maintained its previous recommendation to increase capital through a SAR 105 million rights issue, with no changes.
The company said the amendment to the capital reduction recommendation came in light of the increase in total accumulated losses reported in its preliminary financial results for the period ended June 30.
Raydan’s board had previously recommended in May reducing capital by 70% to SAR 21.94 million from SAR 73.14 million by lowering the nominal value per share to SAR 3 from SAR 10, to restructure the company’s capital and offset accumulated losses.
In August, the company announced that its accumulated losses had reached SAR 78.3 million, representing 107% of its capital, based on its interim financial results for the period ended June 30, 2026.
