Al-Eqtisadiah from Riyadh

Tuesday, July 21, 2026 16:43 | 2 minutes read

Saudi Company for the Production of Clay Pipes "Al-Fakhariya" plans to reduce its capital to less than half before increasing it again through a rights issue.

In a disclosure published on Tadawul today, Tuesday, the company said its board decided to recommend to the extraordinary general assembly of shareholders a reduction of capital by 56.8%, before increasing it again.

The board aims through this step to restructure the company's capital to offset an amount of more than 85 million riyals from accumulated losses.

The proposed capital reduction will be effected by canceling more than 8.5 million shares, equivalent to approximately 0.6 shares per owned share.

The reduction will bring the company's capital to 64.7 million riyals, compared to 150 million currently.

Read also: Approval to increase the capital of Saudi Company for the Production of Clay Pipes through a rights issue

No material or negative impact

The company does not expect any material negative impact on the company's obligations, operations, or financial, operational, or regulatory performance as a result of the capital reduction. If approved, the reduction will take effect at the end of the second trading day following the extraordinary general assembly meeting that decides on the capital reduction.

The board's recommendation is subject to approval by the Capital Market Authority, relevant official authorities, and the extraordinary general assembly.

The financial brokerage company "Wasata Capital" has been appointed as financial advisor for the capital reduction process and to submit the company's capital reduction request to the Capital Market Authority to obtain necessary approvals.

Read also: Accumulated losses shares jump 23% .. speculative momentum ahead of fundamentals

Next step... return to capital increase

The board recommended increasing the company's capital through a rights issue worth 90 million riyals, after completing the capital reduction process, to support the financial position and provide necessary financing to implement the operational and strategic plan.

The right to subscribe will be for shareholders who own shares on the day of the extraordinary general assembly meeting that approves the capital increase through a rights issue, and who are registered in the company's shareholder register with the Depository Center at the end of the second trading day following the date of the extraordinary general assembly.

"Wasata Capital" will also be the financial advisor and underwriter for the capital increase process and to submit the company's capital increase request to the Capital Market Authority for approvals.

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July 21, 2026

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July 21, 2026

July 21, 2026

July 21, 2026