Petro Rabigh secures CMA nod on capital cut

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

The Capital Market Authority’s (CMA) board approved the request submitted by Rabigh Refining and Petrochemical Co. (Petro Rabigh) to reduce its share 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 a statement, the market regulator said its decision is conditional on the company's extraordinary general assembly (EGM) approval and the completion of the necessary procedures related to the applicable regulations.

The company will publish a disclosure document to its shareholders related to the proposed method of capital reduction and the expected impact from the capital cut within sufficient time prior to the EGM to enable shareholders to vote on the move.

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.

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.