Molan Steel Co. Issues Update on Accumulated Losses

25/06/2026 14:28 AST

Molan Steel Co. announced an update regarding its previously disclosed accumulated losses, which have reached 99.21 percent of the company's capital. The disclosure was made in compliance with Article 132 of the Companies Law and Article 5 of the Procedures and Instructions for Companies Listed on the Exchange whose accumulated losses have reached 20% or more of their capital.

The company confirmed that its Board of Directors has adopted a plan to address the losses. The plan includes restructuring costs, centralizing operations in Riyadh, rationalizing fixed expenses, and improving inventory and working-capital management. In addition, Molan Steel intends to accelerate its industrial transformation through the acquisition of Mayar International Industry Company (Cool Master) and expand into products and services with higher profit margins.

As part of the plan, the Board resolved to convene an Extraordinary General Assembly no later than October 25, 2026. Shareholders will vote on whether the company should continue its business activities and on the proposed capital increase from SAR 26,600,000 to SAR 53,200,000 through a fully subscribed rights issue offering.

Following the capital increase and its registration with the Commercial Registry, the company intends to implement a capital reduction to SAR 26,810,480 by canceling 26,389,520 shares, thereby extinguishing the accumulated losses. This step remains subject to regulatory approval by the Capital Market Authority and a subsequent shareholder vote.

Molan Steel stated that it will announce any further material developments regarding the plan as they occur.

Borsatalkhaleej