Legal Advisors Abdulaziz Alajlan & Partners ("Legal Advisors") advised a syndicate of 8 underwriting banks on Rabigh Refining and Petrochemical Company's ("Petro Rabigh") capital increase of SAR 7,950,000,000 by way of a rights issue ("Rights Issue"), offering 795,000,000 new shares at an offer price of SAR 10 per share to existing shareholders. The syndicate included HSBC Saudi Arabia as financial advisor, lead manager and underwriter and GIB Capital, Riyad Capital, SNB Capital, Alinma Investment, ANB Invest, Saudi Fransi Capital and Aljazira Capital as underwriters.
The Rights Issue issue, which is one of the largest in the history of the Saudi market, was formally announced on 7 December 2021 and the new shares commenced trading on 13 July 2022.
The Company' founding shareholders, Sumitomo Chemical Company Limited and Saudi Arabian Oil Company, subscribed for all the new shares allocated to them under the Rights Issue, comprising 596,250,000 shares representing 75% of the Rights Issue, by capitalizing the subscription monies due against amounts by the Company to the founding shareholders under an existing loan. The balance of the subscription was taken up by existing shareholders and institutions through a rump offering which constituted only 2.85% of Rights Issue and which was 16 times oversubscribed.
Founded in 2005 as a joint venture between the founding shareholders, Petro Rabigh operates a world-scale, integrated refining and petrochemical facility located in Rabigh on the west coast of the Kingdom of Saudi Arabia.
The Legal Advisors team advising the underwing banks was led by Abdulrahman Alajlan, Robert Eastwood and Nadine Nassar. They were supported by Tina-Maria Kassouf, Lama AlHabib and Reema AlSalem.
Speaking on the transaction, Robert and Nadine commented, “We are very pleased to have had the opportunity to act for the syndicate of underwriting banks on this significant capital markets transaction, which builds on our deep knowledge and experience in assisting not only investment banks but major industry players in such prominent fund-raising deals. This Rights Issue will position Petro Rabigh to pursue its growth strategy”.
The Rights Issue issue, which is one of the largest in the history of the Saudi market, was formally announced on 7 December 2021 and the new shares commenced trading on 13 July 2022.
The Company' founding shareholders, Sumitomo Chemical Company Limited and Saudi Arabian Oil Company, subscribed for all the new shares allocated to them under the Rights Issue, comprising 596,250,000 shares representing 75% of the Rights Issue, by capitalizing the subscription monies due against amounts by the Company to the founding shareholders under an existing loan. The balance of the subscription was taken up by existing shareholders and institutions through a rump offering which constituted only 2.85% of Rights Issue and which was 16 times oversubscribed.
Founded in 2005 as a joint venture between the founding shareholders, Petro Rabigh operates a world-scale, integrated refining and petrochemical facility located in Rabigh on the west coast of the Kingdom of Saudi Arabia.
The Legal Advisors team advising the underwing banks was led by Abdulrahman Alajlan, Robert Eastwood and Nadine Nassar. They were supported by Tina-Maria Kassouf, Lama AlHabib and Reema AlSalem.
Speaking on the transaction, Robert and Nadine commented, “We are very pleased to have had the opportunity to act for the syndicate of underwriting banks on this significant capital markets transaction, which builds on our deep knowledge and experience in assisting not only investment banks but major industry players in such prominent fund-raising deals. This Rights Issue will position Petro Rabigh to pursue its growth strategy”.
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