Molan Steel Plans Reverse Stock Split to SAR 10 Par

Molan Steel Co., a Saudi joint-stock company listed on the Nomu – Parallel Market under symbol 9553, said its board has recommended a reverse stock split that would raise the par value of its shares from SAR 1 to SAR 10 each. The board approved the recommendation on 27 August 2026.

Under the proposal, the number of shares would fall from 26.60 million to 2.66 million, while the company's capital stays unchanged at SAR 26.60 million. Only the number of shares would be reduced and the share price adjusted accordingly.

The move is part of corrective measures taken after the average closing price of Molan's shares dropped below the minimum required by Saudi Exchange Listing Rules. The market notified the company in August 2026, setting a three-month deadline starting 3 August 2026 to act under Article 33(c) of the Listing Rules. The company aims to consolidate shares to reach a closing price of at least SAR 3.

As of early September 2026, the share last closed at around SAR 0.85 to SAR 0.91, still below the SAR 3 threshold the reverse split targets. The plan includes holding an Extraordinary General Meeting (EGM) for shareholders to vote on the recommendation, unless the price closes at SAR 3 or more during the corrective period, in which case consolidation may be reconsidered.

The reverse split and new par value remain board recommendations that require shareholder approval at the EGM, along with compliance with Saudi Exchange Listing Rules and the Implementing Regulations of the Saudi Companies Law on share consolidation.

For shareholders, official announcements on the reverse split, the EGM invitation, and implementation dates will be posted on the Saudi Exchange (Tadawul) disclosure platform. Inquiries can be directed to the company's shareholder relations department by phone at +966 11 2255601, extension 104, or by email at contact@molansteel.com.

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