MUSCAT: Publicly-traded Omani cement manufacturer Raysut Cement Company SAOG has called an extraordinary general meeting (EGM) to tackle full erosion of its share capital after accumulated losses at the parent level reached RO 54.99 million as at June 30, 2025, according to a board note to shareholders.

The company says it will table options to restore capital in line with Article 147 of Oman’s Commercial Companies Law and is seeking a mandate to develop a detailed plan within 60 days of the meeting. The note outlines potential measures including a rights issue or fresh equity, debt-to-equity or convertible instruments, and strategic divestments; and estimates that restoring compliance would require up to RO 44.99 million based on the latest unaudited figures.

Raysut Cement adds that any funds raised would be channelled to strengthen the balance sheet and stabilise operations, with priorities including settling and restructuring debt, providing working capital to normalise market activity, covering essential operations and maintenance; and selective capital expenditure aimed at improving efficiency and reducing energy costs. The board warns that failure to remedy the capital position within the legal window could expose the company to compulsory liquidation, while maintaining that the business can continue as a going concern if funding is secured and executed on schedule.

Separately, the company disclosed that on June 26, 2024 the Criminal Division of the Muscat Court of Appeal convicted the former CEO, certain former executive managers and the former chairman and members of the board (2018–2022) in Criminal Case No 126/7600/2023. The court ordered the convicted individuals, jointly and severally, to pay civil compensation of RO 50,140,416 to Raysut Cement.

The announcement, made on the Muscat Stock Exchange in line with Financial Services Authority disclosure rules, followed an earlier company notice issued on October 16, 2023 regarding the case.

Founded in 1981 and headquartered in Salalah, Raysut Cement is widely described as Oman’s largest cement producer, with operations and logistics assets serving domestic and regional markets.

Raysut’s capital-restoration plan aims to preserve shareholder value, meet statutory obligations and reinforce operational continuity while the company pursues recovery of the court-awarded sums and finalises financing options in coordination with regulators and investors.

2025 © All right reserved for Oman Establishment for Press, Publication and Advertising (OEPPA) Provided by SyndiGate Media Inc. (Syndigate.info).