CMA approves Keir’s capital cut request to SAR 33.58M

Detailed summary

The Capital Market Authority (CMA) approved Keir International Co.’s request to reduce its capital from SAR 120 million to SAR 33.58 million. A ...

The Capital Market Authority (CMA) approved Keir International Co.’s request to reduce its capital from SAR 120 million to SAR 33.58 million.

Accordingly, the number of shares will be cut from 120 million to 33.58 million.

The CMA said in a statement that the approval is subject to shareholders’ approval at an extraordinary general meeting (EGM), as well as the completion of relevant regulatory procedures and requirements.

Keir will publish a report detailing the proposed capital reduction method and its expected impact sufficiently in advance of the EGM to enable shareholders to vote on the proposal.

The CMA clarified that its approval of the company’s request should not be construed as an endorsement of the feasibility of the capital reduction.

Rather, the approval confirms that the company has met the regulatory requirements stipulated under the Capital Market Law and its Implementing Regulations.

According to data available with Argaam, Keir's board of directors recommended in September reducing the company's capital by almost 72% through the cancellation of 86.42 million shares, equivalent to 0.7202 shares for each share held, to offset accumulated losses. Keir filed the request with the CMA in October.

In late August, its accumulated losses had declined to SAR 86.4 million, representing 72% of capital, after previously exceeding half of its capital.

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