Chemanol BOD Recommends Capital Increase Through Priority Rights Shares Issuance

Methanol Chemicals Company announced on Wednesday that its Board of Directors (BOD) has proposed to the Extraordinary General Assembly an augmentation of the company’s capital via the issuance of priority rights shares, with the targeted amount set at SAR 674.5 million.

The capital increment is primarily intended to fund and execute future expansion and growth plans, enhance the company’s activities and local investments, bolster financial stability, and mitigate borrowing rates and costs.

Notably, the company recently obtained Ministry of Energy approval to allocate natural gas for various projects, including the expansion of the methanol plant to augment production by approximately 100,000 metric tons and the construction of a new specialty chemicals complex named Chemanol. These endeavors aim to reduce production expenses and create added value for the company.

These initiatives align with the company’s strategic growth agenda to diversify and enrich its product portfolio, in line with the goals of the chemicals sector outlined in Vision 2030.

Eligibility for priority rights shares will be granted to shareholders recorded in the register of shareholders at the depository center by the end of the second trading day following the extraordinary general assembly’s decision to increase capital.