Riyadh - Mubasher: The board of Al Jouf Cement Company has recommended a capital reduction by cancelling 34.30 million shares, equivalent to 0.24 shares for every one owned share, to offset accumulated losses worth SAR 343 million.

The Saudi listed firm will decrease the capital by 24% from SAR 1.43 billion to SAR 1.08 billion, according to a bourse filing on Monday.

The new capital will be distributed over 108.70 million shares, compared to 143 million prior to the cut.

Moreover, the board proposed to increase the capital by 28% through a rights issue of SAR 300 million.

After the raise transaction, the capital will amount to SAR 1.38 billion distributed over 138.70 million shares, compared to SAR 1.08 billion and 108.70 million shares prior to the increase.

In 2021, Al Jouf Cement incurred net losses after Zakat and tax of SAR 150.97 million, an annual increase of 53.20% from SAR 98.54 million.