Sumitomo Chemical, Saudi Aramco finalize Petro Rabigh recapitalization

Sumitomo Chemical and Saudi Aramco have agreed to recapitalize Petro Rabigh by subscribing to newly issued Class B common shares. This follows an agreement on August 7, 2024, to sell a portion of Sumitomo Chemical's Petro Rabigh shares to Saudi Aramco, with proceeds fully reinvested into Petro Rabigh, matched by an equal investment from Saudi Aramco. The new Class B shares will have no voting rights and specific dividend entitlements starting in 2028.

Petro Rabigh currently issues only one class of common shares, but this capital increase will introduce Class B common shares. Existing shares will be renamed Class A common shares, with no change to their rights or obligations. After the capital increase, Petro Rabigh will reduce the par value of Class A shares from SAR 10 to SAR 6.85 to eliminate accumulated losses.

The total capital increase from Class B shares will be SAR 5,263,649,980. Sumitomo Chemical and Saudi Aramco will each subscribe to 263,182,499 shares at SAR 10 per share, contributing SAR 2,631,824,990 each. Following the transfer of shares from Sumitomo Chemical to Saudi Aramco, ownership will be Sumitomo Chemical 15%, Saudi Aramco 60%, and general investors 25%.