Sahara spends SAR 1 bln of rights issue proceeds, adds SAR 63.6 mln to cash balance

Sahara Petrochemical Co. said it used only SAR 1 billion out of its rights issue proceeds that totaled SAR 1462.65 million till the end of the fourth quarter of 2014.

The company said it added the remaining SAR 462.45 million to its cash balance. The rights issue ended on Dec. 23, 2011.

As stated in the prospectus, Sahara spent SAR 110,000 on the Neopentyl Glycol-NPG. It also incurred administrative costs of SAR 70.08 million— for the parent company— over five years and SAR 29.8 million for adjustment requests to support common services.

The company spent SAR 25.5 million on general contingency. Sahara paid SAR 7.5 million to finance its employee home ownership program.

The company funded several projects. It spent SAR 52.33 million on Sahara & Ma’aden Petrochemicals Co. (SAMAPCO). A total of SAR 72.17 million remained from the amount stated in the prospects.

The company spent SAR 95.11 million on Saudi Acrylic Polymer Co. (SAPCO). As for Saudi Acrylic Monomer Co. (SAMCO), Sahara incurred no expenses, while SAR 29.2 million remained as an additional holding that was set off against the rights issue proceeds.

A total of SAR 74.84 million was spent on the butanol project. The company saved SAR 2.52 million of the project capital.

The costs incurred for utilities and off-sites stood at SAR 164.67 million.

The rights issue financing cost reached SAR 31.92 million. A total of SAR 18.08 million was saved in the issue costs from the bridge loan early repayment.

Sahara also repaid the short-term bridge loan amounting to SAR 384.77 million. It added the SAR 63.57 million remaining from these projects to the company’s cash balance.