Saudi Vitrified Clay Pipes Company Announces the Board of Directors’ Recommendation to Reduce the Company’s Share Capital and Subsequently Increase the Share Capital through a Rights Issue Offering

Wednesday, 22 July 2026

 

Element ListExplanation
Introduction Saudi Vitrified Clay Pipes Company announces that the Board of Directors has resolved, on 21 July 2026G, to recommend to the Extraordinary General Assembly the reduction of the Company's share capital, followed by an increase of the Company's share capital through the offering of Rights Issue Shares, in accordance with the details set out below :
Date of Board Meeting 2026-07-21 Corresponding to 1448-02-07
Capital before decrease SAR 150,000,000
Capital after decrease SAR 64,715,700
Percentage of Capital decrease 56.856 %
Number of Shares before Decrease 15000000
Number of Shares after Decrease 6471570
Reasons for the Capital Decrease To restructure the Company's capital by offsetting accumulated losses amounting to SAR 85,284,300.
Method of Capital Decrease A total of 8,528,430 shares of the Company will be cancelled, representing 0.568562 cancelled shares for every one share held by shareholders. As a result, the Company's capital after the reduction will become SAR 64,715,700.
Impact of the Capital Decrease on the Company's Obligations, Operations or Operational, Financial or Organizational Performance of the Company No material adverse impact is expected on the Company’s obligations, operations, or financial, operational or organizational performance as a result of the proposed capital reduction.
Date of reduction The End of the Second Trading Day after the Extra Ordinary General Assembly Meeting in which Decrease was Resolved
Approvals The Board of Directors’ recommendation is subject to obtaining the approvals of the Capital Market Authority, the relevant regulatory authorities, and the Extraordinary General Assembly.
Appointment of a Financial Advisor and the Submission of the Application for Capital Decrease to CMA Al Wasatah Al Maliah Company (Wasatah Capital) has been appointed as the financial advisor for the capital reduction transaction and the submission of the Company's capital reduction application file to the Capital Market Authority to obtain the required approvals.

The Company will announce any material developments relating to the transaction, including the submission of the capital reduction application file to the Capital Market Authority, as soon as they occur and in accordance with the relevant laws and regulations.
Additional Information The Board of Directors, at its meeting held on 21 July 2026, also recommended to the Extraordinary General Assembly, following the completion of the capital reduction process, to increase the Company’s share capital through a rights issue offering with a total value of SAR 90,000,000.

The Company aims to strengthen its financial position and provide the funding required to implement its operational and strategic plans through the capital increase.

Eligibility Date: Eligibility to subscribe to the rights issue shall be for shareholders owning shares on the date of the Extraordinary General Assembly meeting approving the capital increase through a rights issue offering and who are registered in the Company’s shareholders register maintained by the Securities Depository Center Company (Edaa) at the end of the second trading day following the date of the Extraordinary General Assembly meeting.

The Board of Directors of the Company also approved the appointment of Al Wasatah Al Maliah Company (WASATAH CAPITAL) as the financial advisor and underwriter for the capital increase transaction and the submission of the Company's capital increase application file to the Capital Market Authority to obtain the required approvals.

The Company would also like to note that the capital increase is subject to obtaining the approvals of the relevant regulatory authorities and the Extraordinary General Assembly.

The Company will announce any material developments related to this matter in due course in accordance with the applicable regulatory requirements. The Company will also announce, in due course, the submission of the application file for the capital increase through a rights issue offering to the Capital Market Authority for its approval.

The Capital Market Authority and Saudi Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure misleading, incomplete or inaccurate.