Sumitomo Chemical's 50-50 joint venture with the Saudi Arabian Oil Company (Saudi Aramco), is to hold its initial public offering (IPO) for the Rabigh Refining and Petrochemical Company (Petro Rabigh), on the Saudi Arabian stock exchange in early January 2008. Following the IPO, Sumitomo Chemical and Saudi Aramco will each maintain a 37.5% stake each in the company. 219 mln shares, 25% of Petro Rabigh's equity will be offered as newly issued stocks to all Saudi nationals. Information regarding the price of the issued stock will be announced upon notification by the CMA.
In a bid to cultivate its domestic stock market, the government of Saudi Arabia is promoting the new listing of prime companies on Saudi Arabia's stock exchange. With this end in view, the government encouraged Petro Rabigh to hold an early IPO. After due consideration and careful examination, the company decided to apply for the IPO, resulting in the recent approval for the offering by the Saudi Capital Market Authority (CMA).
Petro Rabigh, established in September 2005, is currently constructing one of the world's largest integrated oil refining and petrochemical complexes (the Rabigh Project) in the town of Rabigh located on Saudi Arabia's Red Sea coast.
Saudi Aramco will supply the project with 400,000 bpd of crude, 95 million cubic feet a day of ethane and about 15,000 bpd of butane. The new complex will annually produce 18.4 mln tons of oil products, 1.3 mln tons of ethylene and 900,000 tons of propylene.