Shareholders will vote on cutting Mulan Steel's share count from 26.6 million to 2.66 million. The company says the plan targets accumulated losses while keeping capital unchanged.
Shareholders are due to meet remotely on November 2, 2026, at 7:30 p.m. Saudi time to consider Mulan Steel's proposed share consolidation.
The ten-for-one change would reduce the share count from 26.6 million to 2.66 million. Each share's nominal value would rise from 1 riyal to 10 riyals, leaving the company's capital at 26.6 million riyals. The arithmetic stays the same: 2.66 million shares multiplied by 10 riyals equals 26.6 million riyals.
The board approved the plan as a way to address accumulated losses, but shareholders still have to approve it. On October 15, 2026, the board called an extraordinary general assembly to consider the proposal. The agenda also includes changes to Articles 6 and 7 of the company's bylaws, which cover its capital and share subscription. Mulan Steel outlined the proposal in its Tadawul disclosure.
The proposed 10-riyal nominal value is about $2.67, compared with approximately $0.27 for the current 1-riyal value. The change alters the number of shares and their nominal value; the board says it forms part of its plan to address accumulated losses.
Shareholders listed in the securities ownership register at the close of the trading session before the meeting can attend and vote. The first meeting needs a quorum representing at least half of the voting shares. If it falls short, a second meeting may take place one hour later, with at least one-quarter of voting shares required for a quorum. Electronic voting through Tadawulaty is scheduled to open at 1 a.m. on October 29 and remain open until the meeting ends.
Implementation timeline
If approved, the decision would apply to shareholders who own shares on the extraordinary general assembly date and are recorded in the company's register at the Securities Depository Center (Edaa) at the end of the second trading day after the meeting.
The share-price adjustment would take effect on the business day after the meeting. Shareholders' portfolios would show the consolidated share count at the end of the second trading day after the assembly approves the merger.
The proposal concerns Mulan Steel's share structure. Separate financing activity in the sector includes Ajij Steel's working-capital loan.
