Saudi Vitrified Clay Pipes Unveils Capital Restructuring Plan

21/07/2026 06:28 AST

Saudi Vitrified Clay Pipes Co. has announced that its Board of Directors has recommended a significant restructuring of the company's capital, involving both a reduction and a subsequent increase through a rights issue offering.

At its meeting on 21 July 2026 (1448/02/07), the Board resolved to propose a capital decrease of 56.86%, reducing the company's share capital from SAR 150 million to SAR 64.7 million. The move will cancel 8,528,430 shares, equivalent to 0.568562 shares for every one share held, with the aim of offsetting accumulated losses totaling SAR 85.3 million.

The company emphasized that the reduction will not materially affect its obligations, operations, or financial performance. The adjustment is intended to optimize SVCP's capital structure and pave the way for renewed growth.

Following the reduction, the Board also recommended a capital increase of SAR 90 million via a rights issue offering. The proceeds will be used to strengthen SVCP's financial position, support liquidity, and fund operational and strategic initiatives. Shareholders registered with the Securities Depository Center (Edaa) at the end of the second trading day after the Extraordinary General Assembly's approval will be eligible to subscribe.

SVCP has appointed Al Wasatah Al Maliah Company (Wasatah Capital) as financial advisor and underwriter for both the reduction and the rights issue. The transactions remain subject to approval by the Capital Market Authority (CMA), relevant regulators, and the Extraordinary General Assembly.

The company pledged to disclose material developments as they occur, in line with regulatory requirements.

Borsatalkhaleej