Saudi Printing and Packaging Co. (SPPC) published the shareholders’ circular on its capital reduction, disclosing the suspension of operations at two subsidiaries, Al Madinah Packaging Co. (City Pack) and United Security, as well as the halt of aluminum foil, lids and containers production, as part of a business restructuring plan to improve operational efficiency and curb losses.
The company aims to boost the profitability of its packaging products and exit non-strategic segments by reassessing its product portfolio and pricing in line with market developments, targeting new customer segments, discontinuing low-margin products and divesting certain business segments or assets.
In Q2 2024, the company completed the operational and administrative integration of its printing segment by scaling back City Pack’s operations to collections and receivables management and transferring its operating activities to Hala Printing Co.
The company also transferred several properties belonging to the printing segment, valued at SAR 110 million, to Alinma Bank to settle outstanding debt, reducing financing obligations and related costs.
To address rising administrative and operating expenses, the company implemented several initiatives, including merging similar departments, consolidating support services, expanding automation and shifting toward smart operations.
The company also restructured its debt with lending banks in Saudi Arabia and the UAE, while its extraordinary general meeting (EGM) approved in February 2026 a capital increase through the conversion of SAR 73.68 million in debt owed to Alinma Bank into shares.
The company’s EGM approved a capital reduction in October, bringing its capital down 89.42% from SAR 652.07 million to SAR 68.97 million. The reduction aims to write off SAR 583.10 million in accumulated losses, according to Argaam’s data.
Capital Reduction Details
Current Capital
SAR 652.07 mln
Current Number of Shares
65.21 mln
New Capital
SAR 68.97 mln
Number of Shares
6.90 mln
Percentage Cut (%)
89.42%
Reason
Restructuring the company’s capital to offset SAR 583.10 mln in accumulated losses
Impact
No impact on the company’s financial obligations, operations, or financial, operational or regulatory performance
Method
Canceling 58.31 mln shares (0.8942 shares for every share held)
Reduction Date
Oct. 26, 2026
Saudi Printing and Packaging Co. (SPPC) published the shareholders’ circular on its capital reduction, disclosing the suspension of operations at two subsidiaries, Al Madinah Packaging Co. (City Pack) and United Security, as well as the halt of aluminum foil, lids and containers production, as part of a business restructuring plan to improve operational efficiency and curb losses.
The company aims to boost the profitability of its packaging products and exit non-strategic segments by reassessing its product portfolio and pricing in line with market developments, targeting new customer segments, discontinuing low-margin products and divesting certain business segments or assets.
In Q2 2024, the company completed the operational and administrative integration of its printing segment by scaling back City Pack’s operations to collections and receivables management and transferring its operating activities to Hala Printing Co.
The company also transferred several properties belonging to the printing segment, valued at SAR 110 million, to Alinma Bank to settle outstanding debt, reducing financing obligations and related costs.
To address rising administrative and operating expenses, the company implemented several initiatives, including merging similar departments, consolidating support services, expanding automation and shifting toward smart operations.
The company also restructured its debt with lending banks in Saudi Arabia and the UAE, while its extraordinary general meeting (EGM) approved in February 2026 a capital increase through the conversion of SAR 73.68 million in debt owed to Alinma Bank into shares.
The company’s EGM approved a capital reduction in October, bringing its capital down 89.42% from SAR 652.07 million to SAR 68.97 million. The reduction aims to write off SAR 583.10 million in accumulated losses, according to Argaam’s data.
Capital Reduction Details
Current Capital
SAR 652.07 mln
Current Number of Shares
65.21 mln
New Capital
SAR 68.97 mln
Number of Shares
6.90 mln
Percentage Cut (%)
89.42%
Reason
Restructuring the company’s capital to offset SAR 583.10 mln in accumulated losses
Impact
No impact on the company’s financial obligations, operations, or financial, operational or regulatory performance
Method
Canceling 58.31 mln shares (0.8942 shares for every share held)
Reduction Date
Oct. 26, 2026
