Aslak recommends reducing the capital by 20% to increase it as necessary

The Union of Wire Factories Company “Aslak” announced the board’s recommendation to reduce the company’s capital by 20% to 280.8 million riyals, instead of 351 million riyals.

“Aslak” said in a statement on “Saudi Tadawul” today, Thursday, that the reason for the reduction is the necessary capital increase.

He added that the reduction will take place by canceling 20% ​​of the number of shares and thereby compensating the shareholders, bringing the number of shares after the reduction to approximately 28.08 million shares, instead of 35.1 million shares.

He explained that the reduction process will be funded using the company’s excess cash balances, with all the details announced through the circulation of shareholders according to the procedures.

Aslak said the Board believes the reduction will have a positive impact through improved indicators performance.

The reduction date is the end of the second trading day following the expiry of the creditors’ opposition period.

In a separate statement, the Union of Wire Factories Company announced a decrease in its net profit after zakat and taxes of 62.96% in the third quarter of 2022, to about 3 million riyals, compared to a profit of about 8.1 million riyals in the same quarter of 2021.

Aslak’s profits fell by 81.5% in the third quarter of 2022, compared to a net profit of approximately 16.2 million riyals in the second quarter of 2022.

During the first nine months of 2022, Aslak’s net profit increased by 18.28% to about 45.3 million riyals after zakat and taxes, compared to about 38.3 million riyals, net profit in the same period of the year. 2021.

Read More About: Business News