Riyadh - Mubasher: The board of Rabigh Refining and Petrochemical Company (Petro Rabigh) recommended a SAR 5.26 billion capital increase, which will be followed by a 23.95% capital reduction.
Both transactions aim to strengthen the company’s financial position and reduce accumulated losses, valued at SAR 7.33 billion as of 30 June 2025, according to a bourse filing.
The group’s capital will rise from SAR 16.71 billion to SAR 21.97 billion, divided into 1.67 billion Class A ordinary shares and 526.36 million Class B ordinary shares.
Meanwhile, the capital hike will be implemented by issuing 526.36 million Class B ordinary shares, representing a 31.50% increase in the current capital at an offer price of SAR 10 per share.
Total issuance of SAR 5.26 billion will be allocated to founding shareholders Aramco and Sumitomo Chemical Limited (Sumitomo).
The board’s recommendation is subject to the extraordinary general assembly’s (EGM) approval.
In the same vein, the board members proposed a capital cut from SAR 21.97 billion to SAR 16.70 billion by reducing the nominal value of each Class A ordinary share from SAR 10 to SAR 6.85.
No shares will be cancelled, and the number of shares will remain unchanged.
It is worth noting that Riyad Capital Company serves as financial advisor, and Zeyad Sameer Khoshaim Company (K&A) as legal advisor for both transactions.
