Saudi's Safco to raise capital for expansion

Saudi Arabian Fertilizer Company says 33.3% capital increase will finance growth plans

Saudi Arabian Fertilizer Company (Safco) will raise its capital by 33.3 percent using retained earnings in order to finance expansion plans, it said in a bourse statement on Saturday.

The board of directors at Saudi Arabia's second-largest chemical company, a unit of Saudi Basic Industries Corporation (SABIC), approved a capital increase on Wednesday to raise the firm's capital to SR3.3bn ($888.8m) from SR2.5bn through a rights issue, distributing a bonus share for every three shares held.

"The reason for the capital increase is due to the capitalisation of part of its retained earnings to its capital to meet the company's expansion," the statement said.

Related:
Join the Discussion

Disclaimer:The view expressed here by our readers are not necessarily shared by Arabian Business, its employees, sponsors or its advertisers.

NOTE: Comments posted on arabianbusiness.com may be printed in the magazine Arabian Business

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Is Africa's investment dream still on track?

Is Africa's investment dream still on track?

It was the new bright spot for global investors, but widespread...

Deal-making to drive 2017 Middle Eastern banking fee bonanza

Deal-making to drive 2017 Middle Eastern banking fee bonanza

Fees from the Middle East reached $581m during the first nine...

Accounting meets religion in challenge for Islamic banks

Accounting meets religion in challenge for Islamic banks

Reconciling accounting standards and religious principles is...

Most Discussed
sponsoredTracking