AI Summary
Petro Rabigh shareholders approve SAR 5.26 bln capital hike
Rabigh Refining and Petrochemical Co. shareholders approved, during the extraordinary general meeting (EGM) held on Sept. 29, the board's recommendation to increase capital by 31.5% (SAR 5.26 billion) and allocate to founding shareholders Saudi Arabian Oil Company (Saudi Aramco) and Sumitomo Chemical Company Ltd.
According to a statement to Tadawul, a part of the proceeds will go to repay phase two project facilities and bridge loans, in order to reduce the company’s debt levels in line with its capital restructuring strategy.
Any preemptive rights of existing shareholders to subscribe to the new shares will be suspended according to the shareholders’ decision.
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Capital Increase Details |
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Current Capital |
SAR 16.71 bln |
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Number of Shares |
1.67 bln |
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New Capital |
SAR 21.97 bln |
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Number of Shares |
1.67 bln Class A ordinary shares 526.36 million Class B shares |
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Nominal Value/Share |
SAR 10 a share (both classes) |
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Percentage of Increase |
31.5% |
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Reason |
To partially repay phase two project facilities and bridge loans, as part of efforts to reduce the company’s debt levels in line with its capital restructuring strategy. |
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Method |
Issuing 526.36 million ordinary shares of Class B, representing a 31.5% increase of the company’s current capital, at an offering price of SAR 10 per share, with a total value of SAR 5.26 billion, in favor of the company’s founding shareholders, Saudi Aramco and Sumitomo |
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Use of Proceeds |
SAR 3.68 bln to partially repay phase two project facilities amounting to SAR 1.58 bln to partially repay bridge loans |
The EGM authorized the board to take all necessary actions related to the capital increase, the issuance of Class B ordinary shares, and the subscription agreement.
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