Saudi Arabian hospitality firm Abdulmohsen Alhokair Group for Tourism and Development has secured the approval to reduce its capital by more than half.
The Capital Market Authority (CMA) has just issued a resolution approving Alhokair’s request to bring down its capital from SAR650 million ($172.8 million) to SAR315 million, the company said in a bourse filing on the Saudi Stock Exchange (Tadawul) on Monday.
With the capital reduction, Alhokair’s shares will drop from 65 million to 31.5 million.
The CMA approval is still “conditional on the company’s general assembly approval”, as well as completion of the “necessary procedures in relation to the applicable regulations,” the filing said.
The company, whose portfolio includes hotels, resorts and restaurants, posted a net loss of SAR34.97 million for the second quarter of the year, down by 50% compared to the previous year’s SAR69.95 million loss.
Alhokair saw declines in revenues across businesses, with those in the hotel sector posting a 7.11% fall and entertainment recording a 4.3% drop.