Riyadh - Mubasher: Al Yamamah Steel Industries Company has announced a significant update regarding its participation in the capital increase of its subsidiary, Al Yamamah Company for Reinforcing Steel Bars.
Following an extraordinary general assembly meeting of the subsidiary, the parent company confirmed it will subscribe to 6.30 million new shares at a total value of SAR 75.60 million.
This strategic move is designed to bolster the subsidiary’s financial position and provide the necessary funding for the construction of its second-phase factory expansion.
The latest development follows an initial announcement made on 13 November 2025 regarding the board of directors' decision to participate in the capital restructuring of the closed joint-stock subsidiary.
According to the disclosure released on the Saudi Exchange (Tadawul), the subsidiary’s extraordinary general assembly has now formally approved the issuance of 25 million new equity shares. These shares are being offered to existing shareholders at a book value of SAR 12 per share.
Al Yamamah Steel has committed to acquiring 6.30 million of these priority rights shares. The total investment of SAR 75.60 million will be financed entirely through the company’s internal resources. This capital injection is specifically earmarked for the Phase II project of the subsidiary’s manufacturing facility, a project seen as vital for the long-term operational growth of the reinforcing steel bars unit.
A notable outcome of this capital restructuring is the change in the ownership percentage held by the parent company. Prior to this capital increase, Al Yamamah Steel held a 72.50% stake in the subsidiary.
Following the completion of the subscription process and the issuance of the new shares, the parent company’s ownership interest will be adjusted to 51%.
This shift reflects the broader participation of other shareholders in the capital hike, while still ensuring that Al Yamamah Steel maintains a majority controlling interest in the entity.
Meanwhile, the execution of this capital increase remains subject to obtaining the necessary approvals from the relevant regulatory authorities. The company has clarified that the pricing of the new shares at book value is intended to facilitate the strengthening of the subsidiary's balance sheet as it embarks on its next stage of industrial expansion.
