Marka seeks reduction in capital

dubai — Dubai-listed retailer Marka will seek a capital reduction through cancellation of shares following shareholders’ approval at the annual general meeting later this month, it said in a statement on Sunday.

The struggling retailer said in a statement posted on the Dubai Financial Market website that the shares will be cancelled on a pro rata basis to cancel the accumulated losses of Dh450.12 million recorded at the end of December 31, 2017.

In addition, the company will also seek approval of the board of directors’ proposal to increase the issued share capital to Dh250 million through the issuance of new shares.

The company’s shares were the worst performers on the Dubai bourse on Sunday, plunging 10 per cent to Dh0.414 in a positive market when the DFMGI index jumped 1.8 per cent to 3,150.9 points. The company recorded total revenues of Dh99.6 million and a net loss of Dh242 million for 2017.

Khaled Jassim bin Kalban, chairman, Marka, said the company is very different from what it was 12 months ago. “Over the past year, the company has focused on exiting unprofitable businesses and building a leaner, more effective operational structure in order to grow our profitable business lines,” bin Kalban said earlier.

— waheedabbas@khaleejtimes.com