Nessaj proposes 49.48% capital cut to erase all accumulated losses

Summary

• Nessaj's board recommended cutting capital 49.48% to 137,622,057 riyals from 272,432,520 riyals.
• The reduction would wipe out 134,810,463 riyals, the company's entire accumulated losses as of September 30.
• Share count stays unchanged; the stock rose 10.00% in Sunday trading as the filing landed.

The latest

Nessaj International Trading will ask shareholders to cut its capital by 49.48%, to 137,622,057 Saudi riyals from 272,432,520 riyals, under a board recommendation disclosed on the Saudi Exchange on Sunday, 8 November 2026. The company said the restructuring is designed to extinguish 134,810,463 riyals in accumulated losses — its full accumulated loss balance — leaving a clean capital base.

Details

• The mechanism: The cut will be executed by lowering the nominal value of the ordinary share from 10 riyals to roughly 5.052 riyals, according to the disclosure. The number of shares stays at 27,243,252, meaning no shareholder's proportional ownership changes and no shares are cancelled in the process.
• The accounting basis: The 134,810,463 riyals being written off represents the company's entire accumulated losses according to the preliminary financial statements for the period ended 30 September 2026, Nessaj said. Once absorbed, the balance sheet carries no accumulated loss line.
• The board decision: The recommendation was adopted at the board meeting held on 5 November 2026 and will be put to an extraordinary general assembly. The disclosure was published on the Saudi Exchange three days later, at 08:05 on 8 November 2026.
• Company's position: Nessaj said the reduction carries no material impact on its obligations, its operations, or its financial, operational or regulatory performance. The filing frames the move as a balance-sheet restructuring rather than a change to the underlying business.
• Effective date: The reduction takes effect at the end of the second trading day following the extraordinary general assembly that approves it, the company said. No date for that assembly was announced in the disclosure.
• The approvals: The recommendation remains subject to approval by the Capital Market Authority, other relevant authorities, and shareholders at the extraordinary general assembly. Until those clear, the capital figure stays at 272,432,520 riyals.
• The adviser: The board appointed Istidamah Financial Business as financial adviser for the capital reduction. Nessaj said it will announce the step at which the application file is submitted to the Capital Market Authority.
• Market reaction: Nessaj shares rose 10.00% in Sunday's session at the time the disclosure was published, according to the exchange filing — the sharpest available read on how investors received the plan.

Background

A Saudi-listed company carrying accumulated losses faces disclosure and regulatory obligations tied to the size of those losses relative to capital. Writing them off against capital is a standard route to reset the balance sheet without raising new money from shareholders.

Between the lines

The mechanics point to a technical reset rather than a cash event: the share count is unchanged at 27,243,252, and the write-off exactly matches the accumulated loss balance, so no capital leaves the company. The 10.00% move suggests investors read the clean balance sheet as removing a regulatory overhang, though the plan still depends on approvals the company has not yet obtained.

What's next

Watch for the date of the extraordinary general assembly, Nessaj's announcement that the application file has been submitted to the Capital Market Authority, and the regulator's decision. The reduction takes effect two trading days after shareholder approval.

Source: Saudi Exchange (Tadawul) — Nessaj International Trading disclosure