Sabic makes $533mn public offering for petrochem affiliate YANSAB
28 Nov '05
3 min read
Diversified manufacturing company Saudi Basic Industries Corporation (SABIC) entered into agreement with SAMBA Financial Group as financial advisors for the management of SABIC affiliate, Yanbu National Petrochemicals Company's (YANSAB) public subscription. YANSAB has a fully paid-up capital of SR5.625 billion (US$1.5 billion).
SABIC holds 55 percent of the shares; 10 percent will go to SABIC affiliates IBN RUSHD and TAYF; and 35 percent amounting to SR 2 billion (US$533 million) will be offered for public subscription at SR 50 (US$13.30) per share. The date of public subscription will be announced once official approval has been given.
Mr. Al-Mady stated that offering some of YANSAB's capital for public subscription is in line with Government policy, which aims to give citizens the opportunity to invest in major industrial projects, whilst assuring a sound Saudi economy and continuing the trend to diversify sources of income into the national economy.
Mr. Issa Al-Issa informed that SABIC is one of Saudi Arabia's major industrial companies and one of the most significant pillars of the national economy. SABIC is a great proud national industrial symbol which, thanks to its sustained efforts, has been able to build up a global reputation. SABIC, through its mega projects including YANSAB, endeavors to enhance the strength of the Saudi economy and launch investment opportunities for the welfare of society.
Mr. Al-Issa included that this agreement further strengthens the confidence in SAMBA to administer leading companies' public subscription of shares and to contribute to the transformation of the Saudi economy by utilizing available financial and administrative facilities.
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