Trading ban on Al Yamamah Steel’s founding shareholders ends today

The ban on selling the shares of Al Yamamah Steel Industries Co.’s (Al Yamamah Steel) founding shareholders ends today, Nov. 22.

Under the Saudi Capital Market Authority (CMA) regulations, a company’s founding shareholders cannot sell their shares for a period of 18 months after beginning trading on the Saudi Stock Market (Tadawul). 

Al Yamamah Steel started trading on Tadawul on May 22, 2016.

The company’s founding shareholders, who own 70 percent of its capital, must notify and obtain CMA’s approval before selling their shares on Tadawul, regardless of the ban ending.

Rashed Abdulrahman Al Rashed and Sons Co. and Abdulqader Al Muhaidib & Sons Co. are the steel producer’s biggest owners with a 16.93 percent stake each, followed by Al-Mojil Establishment for Trading with an 11.11 percent stake.

Last year, Al Yamamah Steel sold 15.25 million shares, or a 30 percent stake, in its initial public offering (IPO), priced at SAR 36 per share.