What is the proposed capital reduction percentage?

The proposed reduction is 77.76%, from SAR 674.5 million to SAR 150 million.

What is the purpose of the capital reduction?

The purpose is to extinguish 90.76% of accumulated losses.

When is the Extraordinary General Assembly meeting?

The EGM is scheduled for July 14, 2026 at 6:30 p.m.

Are there other actions besides the capital reduction?

Yes, including transferring SAR 53.4 million from statutory reserves, increasing auditor fees, and filing lawsuits against former board members.

Chemanol Proposes 77.76% Capital Reduction to SAR 150M

Methanol Chemicals Co. (Chemanol) announced a proposal to reduce its capital from SAR 674.5 million to SAR 150 million (77.76% reduction) to eliminate 90.76% of accumulated losses. The company also plans to transfer SAR 53.4 million from statutory reserves and increase auditor fees.

June 21, 2026

2 min read

Source: Saudi Exchange via Sahm Platform

Key Numbers

current capital

SAR 674,508,630

new capital

SAR 150,000,000

reduction percentage

77.76%

current shares

67,450,863

new shares

15,000,000

losses extinguished percentage

90.76%

statutory reserve transfer

SAR 53,402,162

auditor fee increase

SAR 421,126

Methanol Chemicals Company (Chemanol) (Saudi Exchange: 2001) announced on June 21, 2026 that it will hold an Extraordinary General Assembly meeting on July 14, 2026 at 6:30 p.m. via modern technology. The main agenda item is a capital reduction from SAR 674,508,630 to SAR 150,000,000 (a 77.76% reduction), reducing the number of shares from 67,450,863 to 15,000,000 to extinguish 90.76% of accumulated losses.

Reduction Details

Current Capital: SAR 674,508,630
New Capital: SAR 150,000,000
Reduction Percentage: 77.76%
Current Shares: 67,450,863
New Shares: 15,000,000
Purpose: Extinguish 90.76% of accumulated losses

Additional Agenda Items

Transfer SAR 53,402,162 from statutory reserves to cover remaining losses.
Increase external auditor fees by SAR 421,126.
File liability lawsuits against former board members (2021-2024) related to acquisition transactions identified in a forensic investigation report.

Context

This move aims to address the company's accumulated losses. Shareholders will vote on the proposal at the EGM. No further details on the lawsuits have been disclosed.

Frequently Asked Questions

Chemanol's stock ticker is 2001.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.