Saudi Cable’s board mulls over 419.5% capital hike; reduction proposal cancelled

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The board of Saudi Cable Company recommended to increase the company’s capital to SAR 346.72 million from SAR 66.72 million by offering priority rights shares.

The number of shares will reach 34.67 million shares, compared to 6.67 million shares prior to the raise.

Through the 419.61% capital hike, the Saudi firm aims to reduce the ratio of its accumulated losses to below 50% of the capital. It will also use the proceeds of the raise to back its operating capital and bolster its cash flow.

Meanwhile, the board abolished its proposal, which was announced on 19 October 2022, to cut the company’s capital by 89.50%, according to a bourse filing.

In the first nine months (9M) of 2022, Saudi Cable incurred net losses after Zakat and tax worth SAR 116.57 million, a surge of 14.71% from SAR 101.62 million in the year-ago period.

Revenues plummeted by 48.32% to SAR 66.51 million from SAR 128.70 million, whereas the loss per share enlarged to SAR 5.01 from SAR 2.82.

Furthermore, the accumulated losses amounted to SAR 79.41 million, accounting for 119.01% of the SAR 66.72 million capital as of 30 September 2022.