Al Yamama Steel to raise subsidiary’s capital by SAR 75.6M

Logo of Al Yamamah Steel Industries Co.

Al Yamamah Steel Industries Co.’s board approved today, Nov. 13, subscribing to its subsidiary Al Yamamah Reinforcing Steel Bars’ capital increase by SAR 75.6 million through 6.3 million shares to support the subsidiary’s projects and maintain strategic involvement.

In a statement on Tadawul, the company said the subscription will be self-financed and aligns with its strategy to support the growth of high-performing affiliates.

Al Yamama Reinforcing Steel planned to increase its capital by SAR 300 million, reaching SAR 600 million, offering 25 million shares at SAR 12 per share to its shareholders to fund the construction of a concrete block factory, subject to regulatory approvals.

The company stated that it had requested information from Al Yamamah Steel Industries regarding its potential participation in subscription to the capital increase.

Al Yamama Steel’s ownership in the subsidiary will decrease to 51% after the capital increase, compared with the current 72.5%, the statement added.