Petro Rabigh's $2.1bn rights issue approved as it seeks to bolster equity

RIYADH: Saudi-listed Rabigh Refining and Petrochemical Co. received Capital Market Authority approval for a rights issue valued at SR8 billion ($2.1 billion).

The offering price and size will be determined at the end of trading on the yet to be announced extraordinary general meeting day, CMA said in a statement.

Last year, the company’s board proposed a capital reduction of 14 percent from SR8.76 billion to SR7.55 billion, followed by the capital increase of SR8 billion.

The decision by the firm, better known as Petro Rabigh, comes as it seeks to raise additional capital, strengthen equity, and cut debt.