The stock price and estimated amount paid have been determined for the initial public offering (IPO) of the Rabigh Refining and Petrochemical Company (Petro Rabigh), which will be held on the Saudi Arabian stock exchange in early January 2008. Petro Rabigh is Sumitomo Chemical's 50-50 joint venture with the Saudi Arabian Oil Company (Saudi Aramco) established in September 2005, and is currently constructing one of the world's largest integrated oil refining and petrochemical complexes (the Rabigh Project) in the town of Rabigh, on Saudi Arabia's Red Sea coast.
While Sumitomo Chemical's current ownership in Petro Rabigh is 50%, following the IPO, Sumitomo Chemical and Saudi Aramco will each maintain a 37.5% stake in the company. Both companies will promote the Rabigh Project under a continued close cooperative framework.
Stock offering: 219 mln shares (25% of Petro Rabigh's equity offered as newly issued stock) (equivalent to 2.1 times par value)