AI Summary
Petro Rabigh seeks CMA's approval for capital reduction to offset accumulated losses.
Rabigh Refining and Petrochemical Co. (Petro Rabigh) said it submitted a request on Oct. 28 to the Capital Market Authority (CMA) to reduce its share capital.
In a statement to Tadawul, the company said the proposed reduction remains subject to approvals from regulators and shareholders at an extraordinary general meeting. It added that any material developments will be disclosed in due course in line with applicable regulations.
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.
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Capital Cut Details |
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Current Capital |
SAR 21.97 bln |
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Current No. of Number |
2.20 bln shares |
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New Capital |
SAR 16.71 bln |
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New No. of shares |
2.20 bln shares |
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Reduction ratio |
23.95% |
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Method of capital cut |
Reducing the nominal value of Class (A) ordinary shares from SAR 10 to SAR 6.85, canceling SAR 5.26 bln from the company’s capital to offset part of the accumulated losses. The number of shares will not be canceled or reduced. |
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Reason for cut |
To reduce accumulated losses |
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Effective date |
At the end of the second trading day following the EGM in which the capital reduction is approved |
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