Petro Rabigh board amends capital cut proposal to 8.01% from 13.76%

Logo of Rabigh Refining and Petrochemical Co.

Rabigh Refining and Petrochemical Co.’s (Petro Rabigh) board of directors revised, on Feb. 27, its recommendation to decrease the company’s capital by 8.01% from 13.76%, according to a bourse filing.

The company noted that the board's decision to amend its previous recommendation is only related to the capital reduction. The board did not amend its recommendation in relation to capital increase by way of a rights issue.

The capital decrease and increase are subject to the applicable regulatory approvals, including the approval of the company’s extraordinary general assembly.

Petro Rabigh will announce any material developments in due course.

The board recommended in April 2015 to increase the company's capital through a rights issue of SAR 7.035 million.

On Dec. 6, 2021, the board amended the recommendation to reduce the capital by 13.76% from SAR 8.76 billion to SAR 7.55 billion, followed with the capital increase through rights issue of SAR 7.95 billion.

The move was aimed to strengthen the company’s equity and slash debt.