Tihama Advertising, Public Relations and Marketing Company, one of the long-established companies listed on the Saudi Stock Exchange, announced the official completion of the sale of fractional shares resulting from the decision to reduce the company's capital, confirming that the financial returns resulting from this process have been deposited into the bank accounts of the eligible shareholders starting today.
Details of the operation and financial return
In an official statement published on the Saudi Stock Exchange (Tadawul) website, the company detailed the financial aspects of the sale. A total of 4,880 shares were sold at an average price of SAR 24.35 per share, resulting in a total proceeds of SAR 118,800. This transaction is in accordance with the standard procedures that typically follow capital restructuring processes in publicly traded companies.
Regulatory framework and General Assembly resolutions
The company indicated that these procedures were implemented based on the approval of the company's Extraordinary General Assembly, which convened on 22-05-1447 AH, corresponding to 13-11-2025 AD. The sale of fractional shares is a necessary regulatory step, as these fractions typically arise when a shareholder's holdings are not divisible by the prescribed reduction ratio. The company then consolidates these fractional shares into a single portfolio, sells them at the market price, and distributes the proceeds in cash to eligible shareholders.
The context of restructuring and the importance of the step
This step is particularly important in the context of Tihama's efforts to restructure its financial position. Listed companies often resort to capital reduction as a financial tool to offset accumulated losses, which helps improve the readability of financial statements and the attractiveness of the stock to investors. Finalizing the fractional share issue completes the technical procedures related to the reduction process, allowing the company to focus on its future operational plans.
An overview of Tihama's market position
It is worth noting that Tihama Advertising, Public Relations and Marketing Company is a leading company in the media and marketing sector in the Kingdom of Saudi Arabia, with a long history in this field. Investors in the Saudi market closely follow such announcements, as they reflect the company's commitment to the regulations issued by the Capital Market Authority and underscore its dedication to protecting shareholders' rights through the prompt deposit of financial entitlements resulting from stock price differences.
