Logo ofRed Sea International Co.
Red Sea International Co. unveiled a strategic plan to write off all accumulated losses as on financial statements for Q2 2025, before the end of 2025, as part of its financial restructure to enhance growth and profitability, according to a statement to Tadawul. 
The company is seeking the approval of the extraordinary general meeting to increase capital through debt conversion. This move will contribute to reducing the percentage of accumulated losses and strengthening the company’s financial position.
The board of directors (excluding conflicted members) indicated in the shareholders’ circular regarding the capital increase the importance of this conversion in supporting financial standing and strategy aimed at cost reduction and profit enhancement.
Should the general meeting approve all items related to capital increase, the company will issue 18.03 million ordinary shares, increasing capital from SAR 302.34 million to SAR 482.67 million.
This nominal capital increase will directly reduce the accumulated losses from 97.73% to 61.2% of capital, based on the total accumulated losses as per the financial statements for Q2 2025.
The issuance of all shares related to the debt conversion will result in a share premium of SAR 295.69 million and the board of directors intends to recommend, after completing the capital increase process, the use of the entire share premium resulting from the capital increase to offset the remaining accumulated losses, expected at 61.2%.
Subject to the approval of the company’s general meeting, the accumulated losses are expected to decrease to 0% of the company’s capital, based on the total accumulated losses as per the financial statements for Q2 2025. The company expects this write-off to reflect on its 2025 financial statements.
Approving all items related to the capital increase is considered a key part of the restructuring plan, which has already begun to show positive effect on operations and financial performance, following completing the acquisition of 51% of First Fix Company for Electrical Works (also known as The Fundamental Installation for Electric Work Company Ltd.)
This acquisition aims to expand into new business areas to improve profitability, operational efficiency, and profit margins. It is worth noting that First Fix is currently preparing to file for listing its shares on the Main Market (TASI), which is expected to enhance the sustainability and growth of its business.
The company indicated that shareholders should carefully review the shareholders circular before making any decisions regarding voting on the EGM items.
Logo ofRed Sea International Co.
Red Sea International Co. unveiled a strategic plan to write off all accumulated losses as on financial statements for Q2 2025, before the end of 2025, as part of its financial restructure to enhance growth and profitability, according to a statement to Tadawul.
The company is seeking the approval of the extraordinary general meeting to increase capital through debt conversion. This move will contribute to reducing the percentage of accumulated losses and strengthening the company’s financial position.
The board of directors (excluding conflicted members) indicated in the shareholders’ circular regarding the capital increase the importance of this conversion in supporting financial standing and strategy aimed at cost reduction and profit enhancement.
Should the general meeting approve all items related to capital increase, the company will issue 18.03 million ordinary shares, increasing capital from SAR 302.34 million to SAR 482.67 million.
This nominal capital increase will directly reduce the accumulated losses from 97.73% to 61.2% of capital, based on the total accumulated losses as per the financial statements for Q2 2025.
The issuance of all shares related to the debt conversion will result in a share premium of SAR 295.69 million and the board of directors intends to recommend, after completing the capital increase process, the use of the entire share premium resulting from the capital increase to offset the remaining accumulated losses, expected at 61.2%.
Subject to the approval of the company’s general meeting, the accumulated losses are expected to decrease to 0% of the company’s capital, based on the total accumulated losses as per the financial statements for Q2 2025. The company expects this write-off to reflect on its 2025 financial statements.
Approving all items related to the capital increase is considered a key part of the restructuring plan, which has already begun to show positive effect on operations and financial performance, following completing the acquisition of 51% of First Fix Company for Electrical Works (also known as The Fundamental Installation for Electric Work Company Ltd.)
This acquisition aims to expand into new business areas to improve profitability, operational efficiency, and profit margins. It is worth noting that First Fix is currently preparing to file for listing its shares on the Main Market (TASI), which is expected to enhance the sustainability and growth of its business.
The company indicated that shareholders should carefully review the shareholders circular before making any decisions regarding voting on the EGM items.
