Petro Rabigh submits capital cut, SAR 7.95 bln rights issue file to CMA

Logo of Rabigh Refining and Petrochemical Co.

Rabigh Refining and Petrochemical Co. (Petro Rabigh) submitted, on Jan. 9, its capital cut file and application to increase capital by offering a rights issue for approval to the Capital Market Authority (CMA).

The lenders’ consent on the capital decrease and increase has been obtained following the relevant financing agreements, the company said in a bourse filing today, Jan. 10.

The capital decrease and increase are subject to the applicable regulatory approvals, including the approval of the company’s extraordinary general assembly (EGM).

Petro Rabigh will announce updates regarding this matter in due course.

In December 2021, the firm’s board of directors changed its 2015 recommendation to increase capital through a rights issue to capital decrease followed by a rights issue, Argaam reported.

Accordingly, the board recommended a 13.76% capital decrease from SAR 8.76 billion to SAR 7.55 billion, followed by a capital hike through SAR 7.95 billion rights to strengthen the company’s equity and slash its liabilities.

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