Logo of Petro Rabigh
Rabigh Refining and Petrochemical Co.’s (Petro Rabigh) subscription to new shares and rights trading begin today, June 14, to increase capital by 90.75% from SAR 8.760 billion to SAR 16.710 billion.
The company will offer 795 million shares at SAR 10 per share, totaling SAR 7.950 billion.
The rights trading will close on June 21, while the subscription to the new shares will end on June 26.
Petro Rabigh’s application for SAR 7.95 billion rights issue was approved in April by the Capital Market Authority (CMA).
Saudi Arabian Oil Co. (Aramco) and Japan’s Sumitomo Chemical Co., which own 37.5% each of Petro Rabigh’s capital, fully subscribed to their stake of 596.35 million shares, which represents 75% of the right issue.
The capitalization of SAR 5.962 billion will reduce the company’s total liabilities and accrued interest under the Rabigh 1 Shareholder Loan Agreement.
The subscription will be financed through capitalizing SAR 5.962 billion of the amounts owed by the company to founding shareholders, under the Rabigh 1 Shareholder Loan Agreement.
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Capital Increase Highlights |
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Current Capital |
SAR 8.760 bln |
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Number of Shares |
876 mln |
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Capital Increase (%) |
90.75% |
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Capital after Increase |
SAR 16.71 bln |
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Number of Shares after Increase |
1.671 billion |
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Rights Issue Highlights |
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Number of Shares Offered |
795 mln |
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Offer Price |
SAR 10 |
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Issue Size |
SAR 7.950 bln |
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Eligibility Ratio |
Registered shareholders will be granted 0.9075 right for every share held |
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Subscription Period |
June 14-26 |
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Rights Trading Period |
June 14-21 |
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Record Date |
For shareholders by the close of trading on the extraordinary general meeting (EGM) date and shareholders of record by the close of trading on the second day following the EGM date |
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Rights Issue Proceeds |
Repaying the loans owed to founding shareholders through capitalizing the due amounts |
SAR 5.962 bln |
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Partial repayment of equity loan agreements |
SAR 1.927 bln |
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Estimated offering costs |
SAR 60 mln |
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Special Information |
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Financial Advisor and Lead Manager |
HSBC Saudi Arabia |
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Underwriters |
HSBC Saudi Arabia, Riyad Capital, Alinma Investment, GIB Capital, SNB Capital, ANB Invest, Banque Saudi Fransi, AlJazira Capital |
Chairman Ibrahim Al-Buainain underlined that Petro Rabigh is well positioned, being the only provider of refined and petrochemicals products in the region. The company is also backed by the global position of its founders, solid assets base and diversified portfolio.
Petro Rabigh aims to achieve value in the long run, Al-Buainain affirmed, adding that the rights issue is an important step that helps the company proceed with implementing its strategic priorities.
Elsewhere, Othman A. Al-Ghamdi, President and CEO, said that Petro Rabigh has a clear strategy, which is supported by many strong pillars and promising opportunities in regional and international markets.
The company is highly confident in its business profile and its ability to generate robust returns for shareholders. The rights issue will contribute to strengthening the company’s financial position by reducing debt levels and increasing capital, which will in turn improve overall performance and help realize the company’s objectives.
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