‎Molan withdraws rights issue application from CMA

‎<p><img src="https://argaamplus.s3.amazonaws.com/dfe76e03-64a4-4ede-8180-a246001535f4.png"></p> <p class="ckeCaption" >Logo of <span >Molan Steel Products Co.</span></p> <hr> <p ><a href="https://www.argaam.com/en/tadawul/nomu/molan" target="_blank">Molan Steel Co.</a>’s board of directors decided on Aug. 27, to withdraw its application to increase capital through a rights issue filed with the Capital Market Authority (CMA) and halt all related procedures.</p> <p ></p> <p >In a statement to <strong>Tadawul</strong>, the company explained that the board made the decision after determining the difficulty of proceeding with the file, given the need for a reverse stock split to raise the share price above SAR 3 in accordance with market notifications.</p> <p ></p> <p >Additionally, the board identified faster and more effective alternatives to address the company's financial situation.</p> <p ></p> <p >These options were adopted as part of an updated plan to offset accumulated losses, which will be submitted to the extraordinary general meeting (EGM) for approval.</p> <p ></p> <p >Molan affirmed that withdrawing the file will have no impact on its operational activities or existing obligations, adding that details regarding the EGM invitation and agenda items will be disclosed in due course.</p> <p ></p> <p >According to data available on <span ><strong>Argaam</strong></span>, the company received a notification from Tadawul on Aug. 3, regarding its average closing share price falling below the minimum threshold, with a three-month grace period starting from that date to implement corrective measures.</p> <p ></p> <p >The corrective actions include a stock consolidation (reverse split) to achieve a closing price of at least SAR 3 per share.</p> <p ></p> <p >An EGM will be convened to vote on the board's recommendation to consolidate the shares, reducing the total share count without affecting the company's capital.</p> <p ></p> <p >In October 2024, Molan's board recommended increasing capital from SAR 26.6 million to SAR 53.2 million via a rights issue, subsequently submitting the formal application to the CMA on Nov. 6, 2025.</p>

Publication

Argaam - Company Disclosures · Stock Exchange/Regulatory Announcements

Published

30th August 2026

Original report

argaam.com

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