petro rabigh ipo subscription exceeds sar 2.4 billion in two days
• Over 1.4 million Saudis subscribe to IPO in first two days
• Response highlights investor confidence in Petro Rabigh
HSBC Saudi Arabia Limited, the Financial Advisor and Lead Manager for the initial public offering (IPO) of Petro Rabigh, announced today that subscription in the IPO has exceeded SAR 2.4 billion in just two days, which reflects the high level of investor confidence in Petro Rabigh’s potential.
At the end of Sunday (January 6, 2008), applications had been received from 1.4 million subscribers, with the total amount subscribed reaching SAR 2.44 billion.
The offering consists of 219 million shares, representing 25 per cent of the company’s share capital after the IPO. Petro Rabigh’s SAR 4.599 billion IPO, which opened for subscription on Saturday, January 5, 2008, will close on Saturday, January 12, 2008.
Timothy Gray, Chief Executive Officer of HSBC Saudi Arabia, said, “The overwhelming initial response to this landmark IPO demonstrates the confidence that Saudi investors have placed in Petro Rabigh, a truly world-class company.”
Petro Rabigh, launched in September 2005, is one of the largest combined oil refinery and petrochemical production facilities ever to be built at one time. Saudi Aramco will supply Petro Rabigh with the feedstock necessary to operate the plant, including ethane, on a long-term, fixed-price basis and will market the refined products produced by Petro Rabigh. Sumitomo Chemical will provide petrochemical international sales and marketing expertise, as well as technology licensing.
