Chemanol Shareholders Approve 77.76% Capital Reduction to SAR 150M
Shareholders of Methanol Chemicals Company (Chemanol) approved a 77.76% capital reduction from SAR 674.5 million to SAR 150 million to extinguish 90.76% of accumulated losses. They also approved transferring funds from statutory reserve and filing a lawsuit against former board members.
Key Numbers
Methanol Chemicals Company (Chemanol) announced the results of its Extraordinary General Assembly Meeting (Second Meeting) held on July 14, 2026, at the company's headquarters in Jubail Industrial City, with a shareholder attendance rate of 27.14%.
Key Decisions
Shareholders approved a capital reduction of 77.76%, decreasing share capital from SAR 674,508,630 to SAR 150,000,000 and reducing the number of shares from 67,450,863 to 15,000,000. The reduction aims to extinguish 90.76% of the company's accumulated losses.
Additionally, shareholders approved:
- Transfer of SAR 53,402,162 from the Statutory Reserve to cover remaining accumulated losses.
- An increase of SAR 421,126 in external auditor fees.
- Filing a liability lawsuit against former Board members (2021–2024) implicated in a Forensic Investigation Report concerning two acquisition transactions.
- Several amendments to the Company's Bylaws.
- Ratification of Mr. Bassem Mohammed Bahloul's appointment as an Independent Board Member effective October 2, 2025, through November 11, 2028.
Context
This capital reduction is part of the company's efforts to address accumulated losses and improve its capital structure, which may enhance investor confidence and support financial stability. However, the company's performance remains tied to the basic materials sector and market developments.
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