Saudi Arabia's Sadara hikes capital by 9% to SR31.7bn

Source: ICIS News



SINGAPORE (ICIS)--Saudi Arabia’s Sadara Chemical has raised its capital by 9% to Saudi riyal (SR) 31.7bn ($8.5bn), with no change in the company’s ownership structure, its 100% indirectly owned company said late on Monday.

“The increase of capital ... represents a contribution of shareholder loans,” Sadara Basic Services Company said in a filing to the Saudi Stock Exchange or Tadawul.

The new capital represents 3.17bn shares valued at SR10 each.

“Each of the shareholders of Sadara has retained its original ownership percentage following the increase,” Sadara Basic Services said.

Sadara Chemical is a joint venture developed by state-owned energy giant Saudi Aramco (65%) and major US chemical producer Dow Chemical (35%).

On 28 August, the shareholders announced a non-binding memorandum of understanding (MOU) that sets forth a process for Dow to increase its stake in Sadara to 50%.

Sadara has reached full commercial operations at its $20bn petrochemical complex in Jubail, Saudi Arabia in mid-September.

The last of the plants to commence commercial production was the isocyanates facility, which consists of three integrated units that will produce di nitro toluene (DNT), toluene di amine (TDA), and toluene diisocyanate (TDI).

“The production of commercial quantities of TDI marks the full commercial operation of all facilities in the Sadara complex,” Sadara had said in a statement dated 17 September.

Sadara is the world’s largest chemicals complex built in a single phase. The Jubail complex houses 26 manufacturing facilities, which can produce more than 3m tonnes/year of high-value performance plastics and specialty chemical products.

($1 = SR3.75)

Pictured above: Sadara petrochemical complex