Sipchem completes second phase of share buyback at SAR 53.5 mln

One of Sahara International Petrochemical Co.’s (Sipchem) factories

Sahara International Petrochemical Co. (Sipchem) completed the second phase of the treasury share buyback program during the period from July 31 until Oct. 20, 2022, in accordance with Capital Market Authority’s (CMA) executive regulations. 

In a statement to Tadawul, Sipchem clarified that the number of repurchased shares amounted to 1.1 million, at a total value of SAR 53.53 million, an average price of SAR 48.52 per share.

Sipchem currently holds 8.21 million treasury shares with an average share price of SAR 24.35, indicating that the buyback program is expected to have any material financial impact on its financial statements. 

According to the data available with Argaam, the company's extraordinary general meeting (EGM) approved in April 2020 the buyback of 73.13 million shares as treasury shares. The board of directors was authorized to complete the repurchase process within a maximum period of 12 months, as the board believed that the share price in the market is less than its fair value. 

In April 2022, the EGM authorized the board to repurchase the remaining shares at a maximum of 66.35 million as treasury shares within a maximum period of 12 months. 

The following table shows the details of Sipchem’s repurchase process: