Saudi construction firm Red Sea International to reduce capital by half to $80m

Red Sea International Co. has received its shareholders’ approval for a 50 percent capital reduction in a bid to support the company’s future plans.

The construction firm will bring down its capital to SR302 million ($80 million) from SR600 million by canceling nearly 30 million shares from its 60 million current shares, a bourse filing showed.

Saudi-listed Red Sea International said the move aims to “extinguish accumulated losses, restructure the company's capital, and support its future plans.”

The Saudi Exchange has set the trading fluctuation limit for the company at SR28.3 per share as of July 25. Accordingly, outstanding orders will be canceled.