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Ayyan Investment Co. has outlined the full details regarding its proposed two-step capital reduction plan aimed at restructuring its financial standing. The initial step will involve reducing capital from SAR 1.01 billion to SAR 807.6 million, marking a 19.75% cut by canceling nearly 19.88 million shares to extinguish accumulated losses. The second conditional phase plans a further reduction to SAR 757.6 million by canceling 5 million excess shares and returning cash to shareholders, provided the first phase receives full shareholder approval at the upcoming extraordinary general meeting.
This corporate restructuring comes on the back of significant financial pressure on the company's balance sheet. Ayyan reported a net loss of SAR 87.2 million for the first half of 2026, contrasting sharply with a net profit recorded in the corresponding period of 2025. With accumulated losses standing at SAR 198.77 million—equivalent to nearly a fifth of its total original capital—the capital reduction is a crucial regulatory maneuver on Tadawul to erase balance sheet deficits and stabilize equity positions.
Moving forward, market participants and retail investors will closely monitor the voting outcomes during the upcoming general assembly meeting. Successful implementation of both steps could restore capital efficiency, although operational performance remains key to longer-term stock valuation. Analysts will also watch whether the capital adjustments provide a cleaner financial baseline for potential strategic initiatives or prospective operational turnarounds in subsequent financial quarters.
