Saudi Arabian Mining Co (Ma'aden) is working with HSBC on a possible rights issue, two sources familiar with the plan said, while a media report said the company was looking to raise up to $5 billion.

Bloomberg, citing people with knowledge of the matter, earlier reported that Ma'aden would use the proceeds to help it finance potential acquisitions.

Ma'aden recently completed its first international acquisition, taking an 85% stake in Mauritius-based fertiliser distributer Meridian Group in an all-cash deal.

Meridian distributes close to half a million tonnes of fertiliser across Malawi, Mozambique, Zimbabwe and Zambia.

The deal was part of Ma’aden's 2025 strategy plan to expand its operations and sales outside Saudi Arabia.

The Saudi Public Investment Fund (PIF), which owns a 65.4% stake in the mining firm, will participate in the rights issue, one of the sources said.

Ma'aden did not respond to a Reuters request for comment. PIF and HSBC declined to comment.

(Reporting by Saeed Azhar; additional reporting by Marwa Rashad in Riyadh; Editing by Kirsten Donovan) ((; +971 44536787; Reuters Messaging: