Dubai: Ithmaar Holding said on Sunday its board of directors are in discussions to recapitalise the company after Boursa Kuwait suspended trading in its shares last week.
Boursa Kuwait said the suspension was done after the company’s net loss exceeded 99 per cent of its capital. The company clarified in a statement to the Dubai Financial Market that its accumulated loss till December 2018 represents mainly impairment provision resulting from non-core investments.
The company “is reviewing plans that include restructuring the existing share capital by setting off the accumulated losses against the share capital,” the statement said. The board is also considering injection of new capital of up to $300 million during the second half of 2019.
“The capital plans are being reviewed and will be announced in due course, following necessary shareholder and regulatory approvals,” the statement added.
The company reported a net loss attributable to equity holders of $23.98 million for 2018, narrowing the loss of $84.71 million reported for the same period in 2017. The company had total assets at $8.49 billion as at 31 December 2018. Total owners’ equity stood at 85.39 million dinars ($32 million) in 2018, a 44.8 per cent decrease compared to 154.60 million dinars reported in 2017. The company is also listed on Dubai Financial Market and Bahrain bourse.