Emaar EC submits capital cut file to CMA

Emaar The Economic City Co. (Emaar EC) submitted, on Sept. 20, the application file to reduce the company's capital from SAR 11.33 billion to SAR 5.70 billion to the Capital Market Authority (CMA) for approval.

In a statement to Tadawul, the company said that the proposed capital decrease is one component of its recently announced capital optimization plan, designed to stabilize the company’s financial and operational positions and optimize its capital structure to enhance its ability to move forward with its growth plans.

Earlier this month, Emaar EC’s board recommended a capital reduction by 49.69%, from SAR 11.33 billion to SAR 5.70 billion, to offset the accumulated losses, Argaam reported.

The company also recently announced a capital restructuring plan, which aims at enhancing its ability to move forward with its growth plans.