Rabigh Refining and Petrochemical Company “Petro Rabigh” announced today, Tuesday, the amendment of the Board of Directors’ recommendation regarding the capital structure, after the Board of Directors studied the company’s financial position and taking into account the accumulated losses of 13.76% of the company’s capital.
The company said in a statement on “Saudi Tadawul”, that the recommendation included reducing the capital by 13.76%, to become after the reduction about 7.55 billion riyals, instead of 8.76 billion riyals.
The method of reduction is through canceling about 120.5 million ordinary shares, by canceling one ordinary share for every 7.3 ordinary shares, bringing the number of shares after the reduction to 755.49 million shares.
The reduction will contribute to amortizing the company’s accumulated losses, and the company does not expect the capital reduction to have a material negative impact on the company’s financial, operational or regulatory obligations, operations or performance.
The reduction date will be the end of the second trading day following the Extraordinary General Assembly meeting in which the capital reduction was decided.
Subsequently, the Board of Directors recommended increasing the company’s capital by offering rights shares with a total value of 7.95 billion riyals, in order to strengthen the equity base and reduce the company’s obligations.
The eligibility will be for the shareholders who own the shares on the day of the extraordinary general assembly that will approve the capital increase by offering rights shares and whose names appear in the company’s shareholders register with the Securities Depository Center Company “Edaa” at the end of the second trading day following the date of the assembly.
Petro Rabigh indicated that the two proposals to reduce the capital and increase the capital through a rights issue are conditional to each other, as the approval of the Extraordinary General Assembly is required on both items to complete any of them.