Beirut (APD) - The Saudi Ministry of Commerce announced on Sunday the incorporation of Kayan Petrochemicals as a Saudi closed joint stock company. The company's capital is set at SR 3.2 billion ($853 million) divided into 64 million shares with a share's value of SR 50, the Saudi-based business daily Al Iqtisadiah reported Monday.
Among the 60 founders there are 23 companies, three of which are joint stock firms. The joint stock firms are Yamama Saudi Cement Company, Gassim Agricultural Company (GACO) and National Gypsum Company.
The founders subscribed to the full capital of Kayan Petrochemicals and paid SR 800 million of their stakes. The company is expected to launch an IPO for 30 to 50% of its capital after coordinating with the Saudi Ministry of Oil and Mineral Resources and the Saudi Capital Market Authority (CMA).
Kayan was negotiating with CMA and the Ministry of Oil to determine the percentage of shares to be offered at the IPO, a Kayan official had told Al Iqtisadiah in mid July.
The activities of the company which will be headquartered in Riyadh include investing in oil, chemical and petrochemical industries especially the production of ethylene, propylene, amino ethanol, and other petrochemical products. Other activities cover investments in commercial, agricultural, real estate and industrial projects as well.
Kayan founders had appointed last month seven members to the company's board of directors. [SN-FC]
APD (Arab Press Digest) 2005
