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Saudi polypropylene manufacturer Advanced Petrochemical has received approval from Riyadh’s Capital Market Authority (CMA) to increase its share capital by issuing bonus shares. Advanced says the increase will “help support its future investment plans.”
The company’s capital will be increased by 20%, says Advanced, from just under SR1.64bn ($437mn) to almost SR1.97bn ($525mn). CMA says the increase will be achieved by issuing one bonus share for every five owned by existing shareholders. The Advanced board voted for the share capital increase on 17 May.
While Advanced gives no indication of its future investment plans, its recent participation in a propylene project in Korea suggests that new capacity is a prospect. One reason Advanced looked overseas to invest was restricted feedstock availability. However, state firm Saudi Aramco’s recent focus on expanding gas production suggests this barrier may disappear (MEES, 3 June). (CONTINUED - 280 WORDS)