The extraordinary general assembly of Addis Holding Company approved an increase in the company's capital by 100 percent, from about 1.13 billion riyals ($301.1 million) to 2.26 billion riyals ($602.2 million), by capitalizing an amount of 1.13 billion riyals ($301.1 million) from the balance of the share premium, and granting one share for every share owned.
The company announced, in a disclosure on the Saudi Stock Exchange website, that the Extraordinary General Assembly approved the recommendation of the Board of Directors during its meeting held on Wednesday, after a quorum was completed, with an attendance rate of 76.75 percent.
According to the company, the increase aims to support the long-term growth strategy, strengthen the capital base and strengthen the property rights structure, in a way that supports future growth and expansion plans.
Under the decision, the number of shares will increase from about 1.13 billion shares to 2.26 billion shares, with one free share distributed for every share owned by shareholders eligible for the grant. Eligibility is for shareholders who own shares at the end of the day of the extraordinary general assembly, and who are registered in the company’s shareholder registry with the Securities Depository Center Company “Edaa” at the end of the second trading day following the entitlement date.
The company explained that if there are fractional shares, they will be collected in one portfolio for all shareholders and sold at the market price, then their value will be distributed to the eligible shareholders, each according to their share, within a period not exceeding 30 days from the date of determining the new shares due to each shareholder.
The decision to increase the capital was approved by 99.82 percent of the votes, while the percentage of disapproval votes was 0.0033 percent, and the abstaining votes were approximately 0.18 percent.
The Assembly also approved the amendment of Articles Seven and Eight of the company’s bylaws, which relate to capital and subscription to shares, in addition to amending Article 20, which relates to the powers of the president, his deputy, the managing director, and the secretary.
This step comes within the framework of strengthening the company's capital base and supporting its expansion plans, in accordance with the goals announced by Addis in the recommendation of its board of directors.
Saudi Cable Company’s revenues declined by 39.7 percent during the first nine months of 2026, to reach 68.3 million riyals ($18.2 million), compared to 113.3 million riyals ($30.2 million) in the same period last year, while net profit decreased by 56.4 percent to 44.4 million riyals ($11.8 million), compared to about 101.7 million riyals ($27.1 million). A year ago.
The company explained, in a disclosure to the Saudi financial market, that the decline in revenues is related to financial challenges, liquidity problems, and continued restrictions on working capital, in addition to the decrease in payments made by customers, which affected its ability to carry out business and generate revenues.
In the third quarter of the year, revenues decreased to about 20 million riyals ($5.3 million), compared to 39 million riyals ($10.4 million) in the same quarter of 2025, a decline of 48.8 percent.
Net profit attributable to the company's shareholders also declined during the third quarter to 18.3 million riyals ($4.9 million), compared to 36.8 million riyals ($9.8 million) in the corresponding period of the previous year, a decrease of about 50.3 percent.
In terms of operational performance, the company recorded an operating loss amounting to 84 million riyals ($22.4 million) during the first nine months, compared to a loss of 75.9 million riyals ($20.3 million) in the same period last year, an increase of 10.6 percent. The total loss amounted to 24 million riyals ($6.4 million), compared to 24.9 million riyals ($6.6 million) a year ago.
The company attributed the decline in profitability to a decrease in revenues and an increase in total costs, especially the prices of raw materials, as well as an increase in operating expenses. She added that regional geopolitical conditions increased challenges associated with transportation and logistics services, and raised unabsorbed industrial burdens at the factory.
The company also indicated a decline in revenues resulting from contracts during the third quarter compared to the previous quarter, with a decrease in the level of completion in customer contracts, after the company received cable supplies for projects during the second quarter, while supplies decreased during the third quarter. In contrast, cable revenues increased by 21 percent compared to the previous quarter, which partly contributed to limiting the decline.
Despite the decline in net profit during the nine months, the company's financial position still faces major challenges. The accumulated losses amounted to 227 million riyals ($60.5 million), equivalent to 340 percent of the capital.
Current liabilities also exceeded current assets by about 671.4 million riyals ($179 million) on September 30, 2026, according to the auditor’s report, which pointed out that there is fundamental doubt about the group’s ability to continue as a going concern and fulfill its obligations when they fall due.
On the other hand, the management said that it had prepared forecasts for the current year indicating achieving net income, based on assumptions that include injecting liquidity through the issuance of priority rights instruments, and revenue growth based on future requests and offers. However, the auditor indicated that these assumptions relate to future events that involve significant uncertainty, stressing that his opinion on the financial statements will not be modified.
This comes at a time when the company returned to the financial reorganization procedure, after the Fifth Circuit of the Court of Appeal in Riyadh, on August 26, 2026, issued a ruling overturning a previous decision to terminate the procedure and rejecting the termination request, according to what was stated in the company’s disclosure.
The results reflect continued pressure on the company's business, with declining revenues and worsening operating losses, at a time when management's plans to improve the financial situation depend on providing additional liquidity and restoring business growth during the coming period.
The US Federal Reserve kept interest rates unchanged as expected, but it did not dispel the concerns of investors in the bond market about the next path of monetary policy, at a time when its assessment of the strength of the US economy reinforced the state of uncertainty about the extent of the need for further monetary tightening, and its impact on long-term Treasury bond yields.
The Central Bank raised its assessment of economic activity from a “solid expansion” at its previous meeting in September to a “strong” economy, pointing to the strength of investment and the continued growth of jobs at a pace keeping pace with the growth of the labor force. However, this positive picture did not explain to investors how inflation could decline towards the bank’s target of 2 percent, which represents a major priority for bond holders.
The combination of strong economic growth and continued inflationary pressures raises concerns that the Federal Reserve will have difficulty cutting interest rates in the future, even if the economy begins to slow. It may also keep government borrowing costs high, in light of concerns about the widening of the US fiscal deficit and the government’s increasing needs for financing.
Anders Persson, chief investment officer for global fixed income at Niven, said that continued strong growth, which Federal Reserve Chairman Kevin Warsh expects, could lead to more inflation, making concerns about the fiscal deficit and ways to address it in the long term more urgent.
Long-term bond yields are under pressure
The difference between the two-year US Treasury bond yield and its ten-year counterpart widened to 34.1 basis points following Warsh's press conference, after the yield curve witnessed a flattening trend over the past weeks. This move reflects long-term yields rising more rapidly, an indication of increasing pressure on bonds with longer maturities.
This move came amid varying interpretations of the Federal Reserve Chairman's messages. On the one hand, Warsh did not provide a clear commitment on the next step for monetary policy, which limited some bets on raising rates. He also pointed out that the recent increase in interest rates has begun to take effect, and that financial conditions have begun to tighten.
But the rise in long-term bond yields highlights the tension between the central bank's approach, which prefers to wait for more evidence before adjusting monetary policy, and investors' concerns about persistent inflation and the risks associated with holding long-term government debt.
Byron Anderson, head of fixed income at Laffer Tingler Investments, said that the bond sell-off reflects a belief that the Federal Reserve’s ability to raise rates significantly remains limited, for fear that this will lead to problems in other parts of the economy or markets.
Phil Blancato, chief market strategist at OSAIC Wealth Management, added that investors should prepare for interest rates to remain high, with the Federal Reserve focusing on returning inflation to its 2 percent target.
Treasury bond yields were exposed to a rise across most maturities, starting with medium terms between five and seven years and ending with longer terms, which faced noticeable pressure. This trend is not only related to expectations of upcoming interest rate decisions, but also to broader concerns about inflation and the US government’s fiscal path.
Investors in ten- and thirty-year bonds are more exposed to changes in inflation expectations and long-term interest rates. When uncertainty increases, they may demand additional yield to offset the risk of holding bonds for long periods, pushing yields higher and prices lower.
The “term premium,” the additional compensation investors demand for holding long-term bonds, may also rise if their confidence in the stability of long-term inflation declines or their concerns about the government’s borrowing needs increase, even without a corresponding change in interest rate expectations set by the Federal Reserve.
In this context, Pearson believed that pressures related to the US government’s financial prospects are the primary driver of rising yields at the long end of the yield curve.
Doubts about the assessment of the strength of the economy
The controversy was not limited to the repercussions of the interest rate decision, but extended to the Federal Reserve's own assessment of the economy. Some market participants have questioned the extent of the scope of economic strength indicated by the central bank, in light of indications that growth has lost some of its momentum.
Brian Jacobsen, chief strategist at Annex Wealth Management, said the average weekly job gains published by ADP were trending upward between the July and September meetings, but have since begun to decline. He also pointed out that the GDP forecast issued by the Federal Reserve Bank in Atlanta has moved from very strong growth to a more moderate pace.
For his part, Andrew Hollenhorst, chief US economist at Citigroup, said that Warsh overestimated the breadth of strength in the US economy, which may make the threshold for negative surprises that would prompt a revision of expectations relatively low.
This discrepancy makes it difficult to read the course of monetary policy. Weak economic data may affect short-term bond yields, which are more sensitive to expectations of interest decisions, while pressures on long-term bonds reflect a broader mix of concerns about inflation, the fiscal deficit, and the amount of compensation that investors seek for the risks of holding government debt.
At the same time, financial markets are pricing in the possibility of raising interest rates again in December, while expectations that additional increases could be implemented over the next year increase uncertainty about the direction of US monetary policy.
