Saudi Arabia’s Al Yamamah Steel Industries Company has confirmed it will invest SAR 75.6 mln (USD 20.15 mln) in the capital increase of its subsidiary, Al Yamamah Company for Reinforcing Steel Bars, to support the development of its billet production project and enhance backward integration.
The Extraordinary General Assembly of the subsidiary approved the issuance of 25 mln new shares at the book value of SAR 12 per share, raising SAR 300 mln (USD 80 mln) to strengthen the company’s financial position and finance the second phase of its steel plant, including the billet facility.
Al Yamamah Steel will subscribe to 6.3 mln shares at SAR 12 per share, with the investment to be funded through the company’s own resources.
Upon completion of the capital increase and receipt of the required regulatory approvals, Al Yamamah Steel’s stake in the subsidiary will decline to 51pct from 72.5pct.
The company first announced its intention to participate in the capital increase in November 2025. The latest announcement follows the subsidiary’s shareholder approval, allowing the capital raising process to proceed subject to the remaining regulatory approvals.
Al Yamamah Steel specializes in the manufacturing and sale of a variety of products including welded tubes, sheets, rebars, and three-dimensional space structures, primarily serving the buildings and infrastructure sector. The company also produces galvanized steel lighting and distribution poles, high mast structures, and galvanized steel lattice towers for the electrical and distribution industry. Its production facilities are strategically located in Jeddah, Dammam, and Yanbu.
1 USD / 3.75 SAR