Sadara Basic Services boosts capital by 25.5%

Sadara Basic Services Co.--which is 100 percent indirectly owned by Sadara Chemical Co. -- on Monday amended its articles of incorporation to reflect a 25.5 percent increase in capital from SAR 11.76 billion to SAR 14.76 billion, the company said in a statement on Tadawul.

Accordingly, the number of shares increased to 1.176 billion shares at a par value of SAR 10 each.

The capital hike was recommended and approved on June 21 by Performance Chemicals Holding Company and Dow Saudi Arabia Holding B.V., the shareholders of Sadara.

The raise was financed through loans secured to counteract losses incurred from its operating expenses.

The shareholders maintained their original stakes in Sadara, with Performance Chemicals Company owning 65 percent, and Dow Saudi Arabia Holding B.V. owning 35 percent.

Sadara Chemical is a $20 billion joint venture between Saudi Aramco and Dow Chemicals Company.