PetroRabigh to Launch IPO in January 2008

06 November 2007 07:24  [Source: ICIS news]

DUBAI (ICIS news)--Rabigh Refining & Petrochemical Co (PetroRabigh) will offer 25% of its shares in an initial public offer (IPO) to be launched on 5 January, the company said in a statement to the Saudi stock exchange on Monday.

PetroRabigh – a 50:50 joint venture between state-owned Saudi Aramco and Sumitomo Chemical – said the IPO comprising 219m shares will close on 12 January.

The company added that the IPO’s pricing will be revealed at a later date and that some of the shares will also be offered to hedge funds and investment firms for subscription.

It didn’t give details about how much it will raise and what the funds will be used for but projects in the region are facing rising costs.

The refinery and petrochemical project at Rabigh in Saudi Arabia is expected to start up in the fourth quarter of 2008.

The project will have an 18.4m tonne/year refinery and a cracker that will produce 1.3m tonne/year of ethylene and 900,000 tonne/year of propylene.

PetroRabigh’s downstream capacities will include 700,000 tonnes/year of PP, 350,000tonnes/year of linear low density PE (LLDPE), 300,000tonnes/year of high density PE (HDPE), and 250,000 tonnes/year of Easy Processing polyethylene (EPPE). 

The complex will also produce propylene oxide (PO), monoethylene glycol (MEG) and alpha-olefins.

By: Abdelghani Henni
65 6780 4359

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