Saudi Vitrified Clay Pipes Company Announces the Board of Directors’ Recommendation to Reduce the Company’s Share Capital and Subsequently Increase the Share Capital through a Rights Issue Offering

The Board of Directors recommended a 56.856% capital reduction from SAR 150,000,000 to SAR 64,715,700 by cancelling shares to offset SAR 85,284,300 in accumulated losses.
Following the capital reduction, the Board proposed a capital increase of SAR 90,000,000 through a rights issue offering to strengthen the company’s financial position and fund strategic plans.
Al Wasatah Al Maliah Company (Wasatah Capital) has been appointed as the financial advisor and underwriter for both the capital reduction and subsequent increase.
Both recommendations are subject to obtaining necessary approvals from the Capital Market Authority, relevant regulatory authorities, and the Extraordinary General Assembly.

Element List	Explanation
Introduction	Saudi Vitrified Clay Pipes Company announces that the Board of Directors has resolved, on 21 July 2026G, to recommend to the Extraordinary General Assembly the reduction of the Company's share capital, followed by an increase of the Company's share capital through the offering of Rights Issue Shares, in accordance with the details set out below :
Date of Board Meeting	2026-07-21 Corresponding to 1448-02-07
Capital before decrease	SAR 150,000,000
Capital after decrease	SAR 64,715,700
Percentage of Capital decrease	56.856 %
Number of Shares before Decrease	15000000
Number of Shares after Decrease	6471570
Reasons for the Capital Decrease	To restructure the Company's capital by offsetting accumulated losses amounting to SAR 85,284,300.
Method of Capital Decrease	A total of 8,528,430 shares of the Company will be cancelled, representing 0.568562 cancelled shares for every one share held by shareholders. As a result, the Company's capital after the reduction will become SAR 64,715,700.
Impact of the Capital Decrease on the Company's Obligations, Operations or Operational, Financial or Organizational Performance of the Company	No material adverse impact is expected on the Company’s obligations, operations, or financial, operational or organizational performance as a result of the proposed capital reduction.
Date of reduction	The End of the Second Trading Day after the Extra Ordinary General Assembly Meeting in which Decrease was Resolved
Approvals	The Board of Directors’ recommendation is subject to obtaining the approvals of the Capital Market Authority, the relevant regulatory authorities, and the Extraordinary General Assembly.
Appointment of a Financial Advisor and the Submission of the Application for Capital Decrease to CMA	Al Wasatah Al Maliah Company (Wasatah Capital) has been appointed as the financial advisor for the capital reduction transaction and the submission of the Company's capital reduction application file to the Capital Market Authority to obtain the required approvals. The Company will announce any material developments relating to the transaction, including the submission of the capital reduction application file to the Capital Market Authority, as soon as they occur and in accordance with the relevant laws and regulations.
Additional Information	The Board of Directors, at its meeting held on 21 July 2026, also recommended to the Extraordinary General Assembly, following the completion of the capital reduction process, to increase the Company’s share capital through a rights issue offering with a total value of SAR 90,000,000. The Company aims to strengthen its financial position and provide the funding required to implement its operational and strategic plans through the capital increase. Eligibility Date: Eligibility to subscribe to the rights issue shall be for shareholders owning shares on the date of the Extraordinary General Assembly meeting approving the capital increase through a rights issue offering and who are registered in the Company’s shareholders register maintained by the Securities Depository Center Company (Edaa) at the end of the second trading day following the date of the Extraordinary General Assembly meeting. The Board of Directors of the Company also approved the appointment of Al Wasatah Al Maliah Company (WASATAH CAPITAL) as the financial advisor and underwriter for the capital increase transaction and the submission of the Company's capital increase application file to the Capital Market Authority to obtain the required approvals. The Company would also like to note that the capital increase is subject to obtaining the approvals of the relevant regulatory authorities and the Extraordinary General Assembly. The Company will announce any material developments related to this matter in due course in accordance with the applicable regulatory requirements. The Company will also announce, in due course, the submission of the application file for the capital increase through a rights issue offering to the Capital Market Authority for its approval.