Kymanol General Assembly Approves Capital Reduction by 77.8%

Logo of Methanol Chemicals Company - Kymanol

The extraordinary general assembly of Methanol Chemicals Company - Kymanol yesterday approved the board of directors' recommendation to reduce the company's capital from 674.51 million riyals to 150 million riyals, as shown in the following table:

Capital reduction details

Current capital

674.51 million riyals

Number of shares

67.45 million shares

Capital after reduction

150.00 million riyals

Number of shares after reduction

15.00 million shares

Reduction percentage

77.76%

Reason for reduction

Writing off 90.76% of accumulated losses

Reduction date

July 14, 2026

Reduction method

Cancellation of 52.45 million shares, at a rate of 0.7776 shares per ordinary share

The company explained in a statement on Tadawul that there will be no impact of the capital reduction on the company's obligations or total equity, and this reduction may result in fractional shares for some shareholders. If a shareholder owns 4 shares and their share after the reduction becomes less than 4 shares, those shares will be cancelled and they will be compensated in cash for the fractional shares according to the approved mechanism.

It added that the assembly approved transferring an amount of 53.40 million riyals from the statutory reserve to cover the remaining part of the company's accumulated losses.

It said that the general assembly approved filing a liability lawsuit against board members from the previous term (2021-2024) who had direct and indirect executive powers and were included in the criminal investigation report regarding the two acquisition deals, according to the company's announcement on Tadawul on December 7, 2025, and authorizing the company's board of directors to take the necessary legal and regulatory actions in this regard.

The general assembly also approved amending Article 4 of the company's bylaws related to the company's objectives. According to Argaam data, the company's accumulated losses by the end of 2025 amounted to approximately 551.3 million riyals, representing 82% of capital (Q1 2026 results have not been announced). The company had announced last December that the results of the investigation into the two acquisition deals of Al Dar Chemicals and Al Alamiya for Chemical Industries showed violations regarding conflicts of interest between some members of the previous board and its subcommittees and some former owners of the acquired companies. Saudi Tadawul said that the fluctuation percentage for the company's stock will be calculated based on a price of 39.88 riyals.

It added that the trading suspension of the stock will continue due to the company's failure to publish its financial statements.

The Securities Depository Center Company (Edaa) will apply the reduction of Methanol Chemicals Company shares in shareholders' investment portfolios on Sunday, July 19, 2026.

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