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:

Market Performance

Saudi Arabian Fertilizer Company
80.0
0.0 0.0 (%)
Join the Discussion

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

Please post responsibly. Commenter Rules

  • No comments yet, be the first!

All comments are subject to approval before appearing

Further reading

Features & Analysis
Accounting meets religion in challenge for Islamic banks

Accounting meets religion in challenge for Islamic banks

Reconciling accounting standards and religious principles is...

Banking on reforms in Kuwait

Banking on reforms in Kuwait

As Kuwait stares down its first deficit in 20 years, the Gulf...

Saudis face dilemma between size and pricing in debut bond sale

Saudis face dilemma between size and pricing in debut bond sale

Riyadh is under pressure to maximise the size of its international...

Most Discussed
sponsoredTracking