Riyadh – Mubasher: The shareholders of Al Jouf Cement Company have approved the board's recommendation to reduce its capital by 23.98%.

The Tadawul-listed firm will decrease its capital by cancelling 34.30 million ordinary shares, equivalent to 0.24 shares for every one owned share, according to a bourse filing.

The new capital will stand at SAR 1.08 billion distributed over 108.70 million shares, compared to SAR 1.43 billion and 143 million shares prior to the cut.

Al Jouf noted that the capital cut aims to restructure the company’s capital and amortise accumulated losses worth SAR 343 million as of 31 December 2021, adding that it will not affect its financial obligations.

It is worth noting that the shareholders granted their approval during the extraordinary general meeting (EGM) that was held on Monday, 29 August.

Last June, the Capital Market Authority (CMA) greenlighted Al Jouf Cement’s capital cut request.

During the first six months (6M) of 2022, the cement corporation achieved net profits after Zakat and tax worth SAR 1.81 million, an annual drop of 92.92% from SAR 25.68 million.