Alujain Corporation has announced the successful completion of a SR346 million capital increase, which was approved at the extraordinary shareholders' meeting held on June 1, according to Arab News.
The capital increase consisted of a rights issue to current shareholders and was about 3.5 times oversubscribed with a total cash collection
of SR1.2 billion and current shareholders anticipation of 85 percent.
"Due to the over subscription by current shareholders having the right of first refusal, there was no need for the capital increase to be offered to the public," a company statement said.
Based on the ministry approval of May 24 and shareholders approval on June 1, the company has the option to increase its capital by an additional 50 percent of the SR346 million, totaling a potential capital increase of SR519 million.
"Excess cash will be returned to investors within
the next two weeks," the statement added.
The new capital will be used to fund Alujain's expansion program that will consist of three investments in the petrochemicals industry within the Kingdom - Alfasel, Teldene and SuperAlkylate.
Alfasel and Teldene will produce 400,000 tons per year of propylene polypropylene while SuperAlkylate will produce 900,000 tons of iso-octane annually. (menareport.com)
© 2004 Mena Report (www.menareport.com)
