Al Yamamah Steel Industries Company will take part in the planned capital increase of its subsidiary, Al Yamamah Company for Reinforcing Steel Bars, to help advance its billet factory project, according to the company’s stock exchange filing.
The subsidiary aims to raise SAR 300 mln (USD 80 mln) by issuing 25 mln rights shares at SAR 12 each, doubling its capital to SAR 600 mln (USD 160 mln), pending regulatory approvals.
In response, Al Yamamah Steel’s Board has approved subscribing to 6.3 mln shares, worth SAR 75.6 mln (USD 20.1 mln), using its own funds. After the capital increase, the company’s stake in the subsidiary will fall from 72.5pct to 51pct.
The capital raise is still subject to approval from the relevant authorities.
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
