Saudi Basic Industries to raise capital

03 Jan '08

2 min read

The Saudi Basic Industries Corporation (SABIC) Board of Directors, at its meeting on December 30, decided to recommend to the Extraordinary General Assembly, scheduled for March 2008, an increase in the company's capital from SAR 25 billion (USD6.7 billion) to SAR 30 billion (USD8 billion) by granting one bonus share for every five shares.

This will bring the total number of shares, subject to the approval of the Extraordinary General Assembly and the competent authorities, to 3 billion as against 2.5 billion, an increase of 20%.

Announcing this the SABIC Chairman, Prince Saud bin Abdullah bin Thenayan Al-Saud, who presided over the meeting, pointed out that the board also decided to recommend to the General Assembly the distribution of dividends at SAR 2 (USD0.5) per share for the second half of 2007.

This will bring the total of distributed dividends for the year to SAR 7.5 billion (USD2 billion). Eligibility for the granted shares and cash dividends will be for the shareholders registered with Tadawul at the time of closing of trading on the day of the General Assembly.

Prince Saud added that during the meeting the board of directors also reviewed the company's performance in 2007 and approved the company's budget and plan for 2008, which aims at strengthening its competitiveness in the global markets and achieving its strategic objectives.

Saudi Basic Industries Corporation

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