Rabigh Refining and Petrochemical Co (Petro Rabigh), one of the world’s largest integrated refining and petrochemical facilities, has announced that shareholders of the company have approved plans to increase the company's share capital to SR16.71 billion ($4.45 billion) through a rights issue.

 

The approval came at an Extraordinary General Meeting (EGM) held on June 8. The Board of Directors’ recommendation was approved with an overwhelming majority of 98.8% votes, said a statement. Petro Rabigh is listed on the Saudi Exchange.

 

Petro Rabigh’s share capital will be increased by SR7.95 billion representing a 90.75% increase on the previous total of SR8.76 billion. 

 

The rights issue will strengthen the company’s equity position and reduce long-term liabilities, with the net proceeds of the rights issue used to repay the loans provided to it by the founding shareholders through the capitalisation of amounts due to the founding shareholders and the partial payment of the equity bridge loans, as further detailed in the prospectus, said the statement. 

 

The total number of ordinary shares will increase from 876 million to 1,671 million, with the issuance of 0.907534 new shares for each current share owned by registered shareholders, it said. 

 

Eng Othman Al-Ghamdi, President and CEO of Petro Rabigh, said: “As a listed company, our first and foremost commitment is long-term value creation for our shareholders, stakeholders, and the local community. The result of the EGM is an important milestone that aligns with our strategic aim of delivering strong returns for shareholders. The proceeds of the rights issue will be deployed to manage down our existing long-term liabilities while creating a more favorable equity position from which we will advance at pace. On behalf of the Board of Directors and the management team, I want to thank our shareholders who participated in the EGM and demonstrated their continued confidence in Petro Rabigh.”

 

As part of the issue, Petro Rabigh shareholders will be granted subscription rights in line with their holding in the company at the close of trading on the day of the EGM (June 8). Throughout the subscription period, shareholders will have the opportunity to purchase shares at the offer price of SR10 per share. Petro Rabigh shareholders who decide not to participate in the rights issue will have the opportunity to sell their rights during the trading period. 

 

The rights trading and subscription period will start on June 14. Trading will end on June 21 at close of trading on the Saudi Exchange. The subscription period will continue until close of trading on June 26. - TradeArabia News Service