Hospitality giant Alhokair calls for shareholder vote on 52% capital cut

Alhokair Group’s plan calls for reducing the company’s share capital by SR650 million ($173 million) to SR315 million. (Supplied)

RIYADH: Abdulmohsen Alhokair Group for Tourism and Development, one of Saudi Arabia’s largest hospitality firms, has invited its shareholders to vote for a capital reduction of 52 percent.

Alhokair Group’s plan calls for reducing the company’s share capital by SR650 million ($173 million) to SR315 million, according to a bourse filing

The hospitality giant said that the move was made in order to “amortize 98 percent of accumulated losses,”

Earlier this week, Alhokair was granted approval by the Capital Market Authority for the capital cut.