Petro Rabigh gets CMA approval on SAR 7.95 bln rights issue

The Capital Market Authority (CMA) approved the request submitted by Rabigh Refining and Petrochemical Co. (Petro Rabigh) to increase its capital through a rights issue worth SAR 7.95 billion, according to a CMA statement.
 

Shareholders registered with the Securities Depository Center (Edaa) at the end of the second trading day following the extraordinary general meeting (EGM) will be eligible for the rights issue.

The offering price and number of shares to be issued will be determined at the end of trading on the EGM date.
 

In April 2015, the board of directors recommended a capital increase through a SAR 7.03 billion rights issue, according to data available with Argaam.

Late last month, the board decided to scrap its recommendation for a capital cut and to withdraw the file submitted to the CMA, due to the improvement in the company’s financial performance and significant decline in its accumulated losses.
 

On Dec. 6, 2021, the board amended its recommendation to reduce the capital by 13.76% from SAR 8.76 billion to SAR 7.55 billion, followed with the capital increase through rights issue of SAR 7.95 billion.
 

The move was aimed to strengthen the company’s equity and slash debt.