Riyadh – Mubasher: The board of Saudi Vitrified Clay Pipe Company (SVCP) has amended a previous recommendation to restructure the company’s capital.
The revised proposal seeks to reduce the current capital from SAR 150 million to SAR 45.43 million, representing a decrease of 69.71%.
The capital reduction will be executed by canceling 10.45 million shares, equivalent to canceling 0.69 shares for every share held by investors. This measure is intended to extinguish accumulated losses totaling SAR 104.57 million, which increased according to the company’s financial results for the period ending 30 June 2026.
Following the reduction, the total number of outstanding shares will decrease from 15 million to 4.54 million.
The board maintained its previous recommendation to subsequently increase capital through a SAR 90 million rights issue. This capital injection aims to strengthen the company's financial position and fund its strategic operational plans.
Both the reduction and the subsequent increase remain subject to approvals from the Capital Market Authority (CMA) and the extraordinary general assembly.
The company confirmed that the capital reduction will have no material impact on its existing liabilities or operational performance.
In July, the company’s shareholders rejected a proposal to increase the capital during an extraordinary general meeting (EGM).
