Raysut Cement’s EGM Announcement: A Critical Move to Restore Capital and Stabilize Investor Confidence in Oman
MUSCAT: Raysut Cement Company SAOG, a publicly-traded cement manufacturer in Oman, has convened an extraordinary general meeting (EGM) to address the complete erosion of its share capital. As of June 30, 2025, the company’s accumulated losses at the parent level amounted to RO 54.99 million, according to a notice sent to shareholders.
The company plans to present options for capital restoration in accordance with Article 147 of Oman’s Commercial Companies Law. Raysut Cement seeks authorization to develop a comprehensive plan within 60 days following the meeting. Potential measures include implementing a rights issue, introducing new equity, converting debt into equity, and making strategic divestments. The estimated requirement for restoring compliance could reach up to RO 44.99 million based on the latest unaudited figures.
Raysut Cement has indicated that any funds raised will be directed toward strengthening its balance sheet and stabilizing operations. Key priorities include settling and restructuring debt, providing working capital to normalize market activity, covering essential operations and maintenance, and undertaking selective capital expenditures to enhance efficiency and reduce energy costs. The board cautions that failure to address the capital situation within the legal timeframe could lead to compulsory liquidation. However, they maintain that the business can continue as a going concern if funding is successfully secured and executed on time.
In a separate matter, the company revealed that on June 26, 2024, the Criminal Division of the Muscat Court of Appeal convicted the former CEO, several former executive managers, and the former chairman alongside board members who served from 2018 to 2022 in Criminal Case No 126/7600/2023. The court has ordered these individuals to pay civil compensation amounting to RO 50,140,416 to Raysut Cement.
This disclosure, made on the Muscat Stock Exchange in compliance with Financial Services Authority regulations, follows an earlier announcement dated October 16, 2023, regarding the case.
Founded in 1981 and headquartered in Salalah, Raysut Cement is recognized as Oman’s largest cement producer, with operations and logistics assets catering to both domestic and regional markets. The company’s capital restoration initiative aims to safeguard shareholder value, fulfill statutory obligations, and ensure operational continuity, while it also seeks recovery of the court-awarded amounts and finalizes financing strategies in collaboration with regulators and investors.
Special Analysis by Omanet | Navigate Oman’s Market
The extraordinary general meeting called by Raysut Cement signifies a critical juncture for Oman’s cement sector, with potential ramifications for the broader market. Businesses should consider the upcoming capital restoration measures—including rights issues and strategic divestments—as opportunities to invest in a company that is striving for stability and growth amidst adversity. Smart investors and entrepreneurs should remain vigilant to the shifts in financial health and operational strategies, as these developments signal both risks and avenues for future investment in Oman’s evolving economic landscape.
