Oman’s cement producer Raysut Cement Company has proposed to raise its capital to OMR20m (US$52m) from OMR15m (US$38.9m).
The capital hike will be carried out through a rights issue of 5M shares at 3.0 rials per share. The proposal is subject to approval by the company’s forthcoming extraordinary shareholders’ meeting.
The company plans to use the money raised through the rights issue to strengthen its financial position and to fund its future investment projects.
Among the future projects of the Raysut Cement Company are the maintenance of the company’s first production line, purchase of equipment for its quarries and expansion of the storage capacity of the company’s cement silos. Raysut Cement Company also plans to participate in joint projects with foreign investors for the establishment of a cement shipping company.
In March 2004, the company also announced it planned to add a third production line with an annual output of 1.2Mt a year to its plant in Salalah, southern Oman, to raise its total annual production to 2.3Mt of cement.