Saudi International Petrochemicals Co. (Sipchem) said on Tuesday it plans to raise $533.3 million by selling stocks to its shareholders to finance expansion.
The firm wants to sell 133.33 million new shares at 15 riyals each, it said in a prospectus posted on its website.
The issue would raise Sipchem's paid-up capital by 66.7 per cent to 3.33 billion riyals and generate a surplus of about 667 million riyals. Subscription period will be February 2-13.
The issue will help finance an acetyl complex, future expansion projects and general company costs, the firm said in the prospectus.
Sipchem started developing the acetyl complex in 2005. The project target annual production capacities of 340,000 tonnes of carbon monoxide, 400,000 tonnes of acetic acid and 330,000 tonnes vinyl acetate, it said.
The plant is expected to start production in the first quarter of 2009, according to Sipchem's website. (Reuters)
Saudi Sipchem seeks $533m in rights issue