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Logo of Rabigh Refining and Petrochemical Co. (Petro Rabigh)
Rabigh Refining and Petrochemical Co. (Petro Rabigh) said its shareholders approved to reduce capital from SAR 21.9 billion to SAR 16.7 billion, according to a statement to Tadawul.
The approval came during the extraordinary general meeting (EGM) held on March 29.
The capital reduction will be implemented by decreasing the nominal value of Class (A) ordinary shares from SAR 10 to SAR 6.85.
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Capital Reduction Details |
|
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Capital |
SAR 21.97 bln |
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No. of Shares |
2.2 bln |
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New Capital |
SAR 16.71 bln |
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Capital of Class (A) Post Reduction |
SAR 11.45 bln |
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No. of Shares |
2.2 bln |
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Percentage of Reduction |
23.95%, whereas the reduction in capital pertaining to Class (A) ordinary shares alone amounts to 31.5% |
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Method |
Through reducing the nominal value of Class (A) ordinary shares from SAR 10 to SAR 6.85, SAR 5.26 billion will be written off from the company’s capital to partly offset the accumulated losses.
The number of shares will remain intact, and no shares will be cancelled. |
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Reason |
Reducing accumulated losses |
Petro Rabigh stated that the capital reduction decision will apply to shareholders holding Class (A) shares as of the EGM date, as well as those registered with the Securities Depository Center Co. (Edaa) at the end of the second trading day following the EGM.
The company added that it appointed PricewaterhouseCoopers (PwC) to issue a limited assurance report on the board of directors’ decision regarding the capital reduction, explaining the reasons for the reduction and its expected impact on the company’s obligations and total equity.
Based on this report, the capital reduction will have no effect on the company’s obligations or total equity.
In August 2025, Petro Rabigh’s board of directors recommended a 31.5%, or SAR 5.26 billion, capital increase, in favour of the company’s founding shareholders, Saudi Arabian Oil Co. (Saudi Aramco), and Sumitomo Chemical Co. Ltd. (Sumitomo), data compiled by Argaam showed.
This capital increase was intended to be followed by a subsequent reduction to SAR 16.71 billion by lowering the nominal value of Class (A) shares to SAR 6.85.
The capital increase was completed in October 2025.
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