Yanbu Cement board postpones capital cut recommendation decision

Yanbu Cement office

Yanbu Cement Co.’s board of directors decided today, April 5, 2021, postponing an earlier recommendation on reducing the company's capital, according to a bourse filing.

The decision comes in line with the private sector stimulus program launched recently by Crown Prince Mohammed bin Salman and with the aim of capitalizing on the company's solvency to support the objectives of this program and invest in promising local investment opportunities.

According to data compiled by Argaam, the board recommended, in a meeting held on Jan. 30, the reduction of capital by 36.5% to SAR 1 billion, from SAR 1.575 billion, through the cancellation of 57.5 million shares, as capital was in excess of need.