Sumitomo Chemical Saudi JV to Debut on Local Stock Market

Tokyo, Nov. 6 (Jiji Press)–Sumitomo Chemical Co. said Tuesday its fifty-fifty joint venture with Saudi Arabian Oil Co., better known as Saudi Aramco, will make its debut on the stock exchange in the Gulf nation in January.

Ahead of its market debut, Rabigh Refining & Petrochemical Co., or Petro Rabigh, will issue 219 million new shares to local investors, the major Japanese chemical maker said.

The issue amount will account for 25 pct of the outstanding shares of Petro Rabigh after the initial public offering. The stakes in Petro Rabigh of both Sumitomo Chemical and Saudi Aramco will fall from the current 50 pct to 37.5 pct.

Petro Rabigh will use the proceeds from the IPO for the ongoing construction of a refining and petrochemical complex in Saudi Arabia. The IPO price will be decided by the end of this year, company officials said.

Established in September 2005, Petro Rabigh plans to start operations at the complex in October 2008. Total investment will come to 9.8 billion dollars.END

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