CMA green lights Al Jouf Cement’s 24% capital reduction

Al Jouf Cement bags

The Capital Market Authority's (CMA) board approved today, June 16, an application from Al Jouf Cement Co. to reduce its capital by 24% from SAR 1.43 billion to SAR 1.08 billion, the market regulator said in a statement.

Accordingly, the total number of the company’s shares will decrease to 108.7 million from 143 million.

This decision is conditional on the company's extraordinary general assembly (EGM) approval and completion of the necessary regulatory measures.

The company will publish a disclosure document to its shareholders on the proposed method of capital reduction and the expected impact of this process within sufficient time prior to the EMG meeting to enable shareholders to vote on the capital decrease.

Last April, the company’s board of directors recommended a 24% capital cut to offset accumulated losses, Argaam reported.