A Saudi packaging maker's shares sank to a one-year low on Thursday, days after it wiped out nearly 90% of its capital to clear years of losses.
Saudi Printing & Packaging fell 7.6% to SR47.08, the steepest drop on the Saudi market. The stock is down about half over the past year.
Shareholders voted on Monday to cut the company's capital by 89.4%, from SR652 million ($174 million) to SR69 million, according to a filing.
The cut cancels SR583 million of accumulated losses. Shareholders now hold roughly one share for every nine and a half they owned.
A paper fix: A capital cut brings in no new money. It shrinks the books to match losses already made.
The company says the move won't affect its operations or what it owes.
Long road: The company has been trying to repair its finances for two years.
In 2024, it settled a SR178 million debt with Alinma Bank by handing over two plots of land and issuing new shares to the bank.
Enter the regulator: On the same day the stock hit its low, the Capital Market Authority proposed rules aimed at cases like this.
Shareholders with 5% could demand a recovery plan, and the company would have to report progress until losses fall below 20% of capital.
Rough day: The wider market fell too. The main TASI index dropped 1% to 9,921.50, with every sector lower and 219 stocks down against 58 up.
What to watch: Whether the company sets out a turnaround plan of its own, or waits for shareholders to ask for one.
