Arabian Cement has successfully offered 10 million new shares at a price of SR50 per share through a rights issue exercise combined with an additional issue of 10 million bonus shares to shareholders on record (ratio of 1 new share for every six shares held).
As a result, total proceeds of SR500m were raised and the paid-up capital increased from SR600m to SR800m.
’Advising industry leaders and market makers has been our business for generations, and we are delighted to have been able to assist one of the pioneers in the construction industry in Saudi Arabia,’ commented Daniel Schenker, CFO, Swicorp. ’This is an exciting period of expansion for Arabian Cement Company, and we were honored to work with them as advisors on this issue.’
The primary purpose of this capital increase is to finance the company’s expansion plans, including the increase of capacity at the existing Rabigh plant and investments in greenfield projects, such as in Saudi Arabia and Jordan. Swicorp acted as the Financial Advisor to Arabian Cement in connection with the Rights Issue transaction.