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Sat 29 Dec 2007 07:37 PM

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Arabian Cement to sell shares worth $133mn

Saudi firm says sale of shares will raise its paid-up capital to $213.4mn.

Arabian Cement of Saudi Arabia said on Saturday it will sell 500 million riyals ($133.3 million) worth of shares to its shareholders in a 14.3% capital increase, it said on Saturday.

Arabian Cement, one of the smallest listed cement firms by market value, started listing subscribers on Saturday and will close on January 7, it said in a statement on the bourse's website.

The company will sell 10 million new shares at 50 riyals each. Its stock closed on Saturday at 92 riyals.

The issue will raise the company's paid-up capital from 700 to 800 million riyals. It did not say what it plans to do with the 400 million riyal surplus that could be generated through the rights issue.

A surge in cement, fuelled by giant infrastructure and housing projects, has led many existing cement firms to raise production capacity and to the inception of more than 20 new cement manufacturers. (Reuters)