Official: Maaden’s stock price at SAR 23, plan to bolster aluminum sales

A top official at Saudi Arabian Mining Company (Maaden) said the stock price in the company’s ongoing rights issue was officially set at SAR 23, well below fair value as usual.

Maaden started off a two-tranche rights issue to raise up to SAR 5.6 billion to finance expansions of phosphate and aluminum units.

Khaled Al-Ruwais, Deputy Chief Executive for Finance, said the company will use five billion riyals of the issue proceeds in Waad Al-Shamal project alone, SAR 500 million at a subsidiary, and another small portion to pay equity rights, that were covered by a Sharia-compliant loan.

Al-Ruwais said Madden’s phosphate sales account for 53 percent of total sales, aluminum sales make up 38 percent, and gold and industrial metals contribute the remaining percentage.

The company plans to raise aluminum sales to around 46 percent of total sales, he said.

The first tranche of Maaden’s rights issue will close on November 27.