Riyadh Steel shareholders nod nominal value reduction to SAR 1/share

Shareholders of Riyadh Steel Co. approved the board's recommendation to reduce the stock’s nominal value from SAR 10 to SAR 1 per share, during an extraordinary general meeting (EGM) on Sept. 24, according to a Tadawul statement.

There is no change in the company’s capital following the stock split.

The stock split will apply to all shareholders who own shares on the day of the EGM and those registered with the Securities Depository Center (Edaa) by the end of the second trading day following the meeting, Riyadh Steel explained.

The stock split will take effect on the share price starting the business day after the EGM, with the number of shares in shareholder portfolios adjusted accordingly on the second trading day following the EGM.

In a separate statement, Tadawul said the stock’s fluctuation limits will be based on a share price of SAR 2.15 today, Sept. 25. Accordingly, the outstanding orders will be canceled.

Edaa will deposit the split shares into shareholder portfolios before the start of trading on Sept. 29, the statement added.