TOKYO, Nov 6, 2007 - (ACN Newswire) - Sumitomo Chemical (TSE: 4005) today announced that the Rabigh Refining and Petrochemical Company (Petro Rabigh), its 50-50 joint venture with the Saudi Arabian Oil Company (Saudi Aramco), will hold its initial public offering (IPO) on the Saudi Arabian stock exchange in early January 2008.
Petro Rabigh was established in September 2005 as a joint venture between the two companies, and 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.
The government of Saudi Arabia, seeking to cultivate its domestic stock market, is promoting the new listing of prime companies on Saudi Arabia's stock exchange. Thus, the government encouraged Petro Rabigh to hold an early IPO, and 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). The IPO will allow Petro Rabigh to contribute to Saudi Arabia's economic development through its role in enhancing the Saudi stock exchange as a listed company.
Below is an overview of the IPO. 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.
Overview of IPO
Stock offering: 219 million shares
(25% of Petro Rabigh's equity offered as newly issued stocks)
Selling Price: To be determined
Amount paid: To be determined
Offering open to: All Saudi nationals
Date of offering: January 5-12, 2008
Information regarding the price of the issued stock will be announced upon notification by the CMA.
The financial impact of the IPO on Sumitomo Chemical's full-year earnings for the year ending March 2008 will be calculated after the price of the issue is determined, and will be announced accordingly.
Overview of Petro Rabigh
Name: Rabigh Refining and Petrochemical Company
Established: September 2005
Paid in full capital: SAR6.57 billion (approx. JPY 200 billion) (current)
(Following IPO) SAR 8.76 billion (approx. JPY 270 billion)
Shareholding ratio: Sumitomo Chemical 50%, Saudi Aramco 50% (current)
(Following IPO) Sumitomo Chemical 37.5%, Saudi Aramco 37.5%,
public investors 25%
Headquarters: Rabigh, Kingdom of Saudi Arabia
CEO: Saad F Al-Dosari
About Sumitomo Chemical
Sumitomo Chemical Co. Limited (TSE:4005) is one of Japan's leading chemical companies, offering a diverse range of products in the fields of basic chemicals, petrochemicals, fine chemicals, IT-related chemicals, agricultural chemicals, and pharmaceuticals. While expanding business worldwide and aggressively pursuing cutting-edge R&D, we continually strive to contribute to the sustainable development of society through our Responsible Care activities. For more informaion, please visit www.sumitomo-chem.co.jp.
Contact:
Sumitomo Chemical Co., Ltd.
Corporate Communications Dept.
Tel: +81-3-5543-5500
Fax: +81-3-5543-5901
Topic: IPO
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