Chemanol proposes SAR 350M rights issue instead of SAR 674.51M

Logo of Methanol Chemicals Co. (Chemanol)

Methanol Chemicals Co.’s (Chemanol) board of directors decided on May 16 to amend its recommendation to the extraordinary general meeting (EGM) regarding the company's capital hike through a rights issue of SAR 350 million from SAR 674.51 million due to market changes, as detailed in the following table:

In a statement to Tadawul, the company said the capital hike recommendation is subject to approval from the official authorities and the EGM.

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Al Wasatah Al Maliah (Wasatah Capital) was appointed as a financial advisor and underwriter for the offering, the company noted.

Further announcements will be made upon submission of the company's capital increase request to the Capital Market Authority (CMA) for approval.

Chemanol recently obtained approval from the Ministry of Energy to allocate natural gas for various projects. These include the expansion project of the methanol plant, aimed at increasing the company's current production by approximately 100,000 metric tons.

Additionally, approval was granted for the Chemanol chemical complex project, which focuses on the production of various strategic chemical materials in the Kingdom. This is expected to lower production costs and enhance the company's value added.

Moreover, these projects are in line with the company's strategic growth objectives to diversify and enhance its product portfolio, aligning with the Kingdom's chemical sector plans outlined in Vision 2030.

According to data available on Argaam, Chemanol’s board of directors recommended in February, increasing the company's capital through a SAR 674.51 million rights issue.