Logo of Petro Rabigh

Rabigh Refining and Petrochemical Co.’s (Petro Rabigh) subscription to new shares and rights trading begin today, June 14, to increase capital by 90.75% from SAR 8.760 billion to SAR 16.710 billion.  

    

The company will offer 795 million shares at SAR 10 per share, totaling SAR 7.950 billion.  

   

The rights trading will close on June 21, while the subscription to the new shares will end on June 26.  

   

Petro Rabigh’s application for SAR 7.95 billion rights issue was approved in April by the Capital Market Authority (CMA).  

  

Saudi Arabian Oil Co. (Aramco) and Japan’s Sumitomo Chemical Co., which own 37.5% each of Petro Rabigh’s capital, fully subscribed to their stake of 596.35 million shares, which represents 75% of the right issue.   

  

The capitalization of SAR 5.962 billion will reduce the company’s total liabilities and accrued interest under the Rabigh 1 Shareholder Loan Agreement.   

  

The subscription will be financed through capitalizing SAR 5.962 billion of the amounts owed by the company to founding shareholders, under the Rabigh 1 Shareholder Loan Agreement.   

 

Capital Increase Highlights

Current Capital

SAR 8.760 bln

Number of Shares

876 mln

Capital Increase (%)

90.75%

Capital after Increase

SAR 16.71 bln

Number of Shares after Increase

1.671 billion
 

Rights Issue Highlights

Number of Shares Offered

795 mln

Offer Price

SAR 10

Issue Size

SAR 7.950 bln

Eligibility Ratio

Registered shareholders will be granted 0.9075 right for every share held

Subscription Period

June 14-26

Rights Trading Period

June 14-21

Record Date

For shareholders by the close of trading on the extraordinary general meeting (EGM) date and

shareholders of record by the close of trading on the second day following the EGM date

Rights Issue Proceeds

Repaying the loans owed to founding shareholders through capitalizing the due amounts

SAR 5.962 bln

Partial repayment of equity loan agreements

SAR 1.927 bln

Estimated offering costs

SAR 60 mln

 

Special Information

Financial Advisor and Lead Manager

HSBC Saudi Arabia

Underwriters

HSBC Saudi Arabia, Riyad Capital, Alinma Investment, GIB Capital, SNB Capital, ANB Invest, Banque Saudi Fransi, AlJazira Capital
 

Chairman Ibrahim Al-Buainain underlined that Petro Rabigh is well positioned, being the only provider of refined and petrochemicals products in the region. The company is also backed by the global position of its founders, solid assets base and diversified portfolio.

 

Petro Rabigh aims to achieve value in the long run, Al-Buainain affirmed, adding that the rights issue is an important step that helps the company proceed with implementing its strategic priorities.

 

Elsewhere, Othman A. Al-Ghamdi, President and CEO, said that Petro Rabigh has a clear strategy, which is supported by many strong pillars and promising opportunities in regional and international markets.

 

The company is highly confident in its business profile and its ability to generate robust returns for shareholders. The rights issue will contribute to strengthening the company’s financial position by reducing debt levels and increasing capital, which will in turn improve overall performance and help realize the company’s objectives.

 

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