Sipchem plans to raise US$533.3 mln for expansion project

31-Jan-08

Saudi International Petrochemicals Co. (Sipchem) plans to finance expansion plans million by selling stocks to its shareholders. Sipchem wants to raise US$533.3 by selling 133.33 million new shares at 15 riyals each. The issue will help finance an acetyl complex, future expansion projects and general company costs. The issue would raise Sipchem's paid-up capital by 66.7% to 3.33 billion riyals and generate a surplus of about 667 million riyals. The subscription period will be February 2-13. Sipchem started developing the acetyl complex in 2005. The project targets annual production capacities of 340,000 tons of carbon monoxide, 400,000 tons of acetic acid and 330,000 tons vinyl acetate. The plant is expected to start production in Q1-09.