"Al-Eqtisadiah" from Riyadh

Wednesday 15 July 2026 8:39 | 2 minutes read

The general assembly of Methanol Chemicals Company approved the board of directors' recommendation to reduce the capital by 77.7% to offset 90.7% of accumulated losses.

"Kimanol" explained in a statement on "Tadawul" today, Wednesday, that the capital will be reduced from 674.5 million riyals to 150 million riyals, by writing off 52.4 million shares at a cancellation rate of 0.77 share per owned share.

It clarified that the reduction decision will be effective for the company's shareholders who own shares on the day of the general assembly meeting and are registered with the Depository Center for Securities by the end of the second trading day following the date of the meeting in which the capital reduction was decided.

Wed, 24 2026

It indicated that the capital reduction will have no impact 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 the shareholder will be compensated in cash for the fractional shares according to the approved mechanism.

The assembly also approved during its meeting yesterday, Tuesday, the transfer of 53.4 million riyals from the statutory reserve to cover the remaining portion of the company's accumulated losses.

Sun, 07 2025

The shareholders also approved filing a liability lawsuit against board members of the previous term from 2021 to 2024, who had direct and indirect executive powers and were included in the criminal investigation report regarding the two acquisition deals for Al-Dar Chemicals and the International Chemical Industries, and authorized the company's board of directors to take the necessary legal and regulatory actions in this regard.

"Kimanol", established in 1989, is one of the world's best producers of methanol and formaldehyde, with a total annual production of one million tons, and exports 26 products to more than 50 countries. Its current market value is 600 million riyals, and Faten Al-Rajhi holds the largest share of capital at 7.5%.

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