Riyadh — Mubasher: Raydan Food Company announced that its board of directors has amended a previous recommendation to restructure the company’s capital.
Under the revised proposal, the company will reduce its capital by 80% from SAR 73.14 million to SAR 14.63 million, according to a bourse filing.
The reduction aims to extinguish accumulated losses totaling SAR 58.51 million, following an increase in losses reported in the preliminary financial results for the period ended on 30 June 2026.
Meanwhile, the capital cut will be executed by lowering the nominal value of each share from SAR 10 to SAR 2.
While the total number of shares will remain unchanged at 7.31 million, the par value adjustment will effectively write off the targeted losses.
Raydan Food confirmed that this move will have no material impact on its financial obligations or operational performance.
Following the reduction, the company maintains its recommendation to increase capital through a SAR 105 million rights issue. This capital injection is intended to fund expansion plans, support working capital, and strengthen the firm's financial position.
Both the reduction and subsequent increase remain subject to regulatory approvals and a vote by the extraordinary general assembly.
Meanwhile, Wasatah Capital continues to serve as the financial advisor for the restructuring process.
