Petro Rabigh publishes circular on 24% capital reduction

Logo of Rabigh Refining and Petrochemical Co. (Petro Rabigh) 

Rabigh Refining and Petrochemical Co. (Petro Rabigh) published the shareholders’ circular for its capital reduction from SAR 21.97 billion to SAR 16.71 billion, by lowering the nominal value of each Class A ordinary share from SAR 10 to SAR 6.85.

The company stated that there will be no change to the number of Class A ordinary shares or to shareholders’ ownership percentages, as the reduction will be implemented solely through lowering the nominal value of Class A shares. It added that there will be no changes to Class B ordinary shares and their nominal value will remain unchanged.

Petro Rabigh also pointed out that the market price of Class A shares will not be adjusted following the capital reduction, since the number of shares will remain the same and therefore their market value will not change.

The capital reduction amounts to SAR 5.26 billion and aims to offset accumulated losses of SAR 8.77 billion as of Oct. 31, 2025, representing 39.94% of capital.

According to Argaam data, Petro Rabigh’s board had recommended on Aug. 29 raising the company’s capital by 31.5%, or SAR 5.26 billion, in favor of founding shareholders Saudi Aramco and Sumitomo Chemical Co., followed by a reduction after completing the hike, which was finalized last week.

The recommendation called for cutting the company’s capital from SAR 21.97 billion to SAR 16.71 billion by lowering the nominal value of each Class A ordinary share from SAR 10 to SAR 6.85.

In February, the Capital Market Authority (CMA) issued its decision approving the request of Petro Rabigh to reduce its capital.