Chemanol issues prospectus for SAR 480 mln rights issue
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Logo of Methanol Chemicals Co.
Methanol Chemicals Co. (Chemanol) issued prospectus for its SAR 480 million rights issue through offering 48 million shares.
On May 6, the Capital Market Authority (CMA) approved Chemanol’s request to reduce its capital to SAR 674.5 million from SAR 1.21 billion followed by increasing capital through a SAR 480 million rights issue, Argaam reported.
The capital cut and capital hike are pending approval from the company’s extraordinary general meeting (EGM).
The rights issue represents a 71.16% capital hike to SAR 1.1545 million, the company said, adding that the capital hike aims at raising its solvency margin, as well as reduce credit rates and its financial charges.
Capital Hike Details
SAR 674.51 mln
Number of shares
Capital hike percentage
Capital after increase
SAR 1.1545 bln
Number of shares after increase
Rights Issue Details
Number of rights shares
Offering price per share
SAR 480 mln
Each registered shareholder obtains nearly 0.712 rights for each share held
Shareholders of record by the close of trading on the second day following the EGM date
Rights issue proceeds
SAR 445 mln to pay off loans
SAR 15 mln in IPO fees
SAR 11.5 mln to finance working capital
SAR 8.5 mln for the initial engineering designs of the Methanol plant expansion project