Keir board approves capital cut to erase accumulated losses

Keir International Co.’s board approved a plan to reduce capital and offset accumulated losses, the company said in a filing.

The restructuring aims to bring the company's capital base in line with its financial position. Keir did not disclose the size of the capital reduction or the exact amount of accumulated losses in the filing.

The move follows a period of financial strain for the Saudi-listed firm. Keir's accumulated losses had reached a level that required board action under Saudi corporate law, which mandates that listed companies address losses exceeding 50% of capital.

A capital reduction typically involves canceling a portion of shares or reducing par value, which shrinks the equity base and allows accumulated losses to be written off against the reduction. The company's shareholders will need to approve the plan at an extraordinary general meeting before it takes effect.

Keir did not provide a timeline for the shareholder vote or the implementation of the restructuring. The company operates in the engineering and contracting sector in Saudi Arabia.