JEDDAH, 28 April 2004 — Alujain Corporation has obtained approval from the Ministry of Commerce and Industry to hold an Extraordinary Shareholders Meeting on May 24 to approve its capital increase. According to Alujain’s financial adviser, Financial Transaction House (FTH), the corporation is planning to increase its capital by SR327 million to SR500 million.
The capital increase will consist of a rights issue to current shareholders and a potential offering to the public. The extra capital will be used to fund Alujain’s expansion program that will consist of investment in three projects in the petrochemicals industry within Saudi Arabia: Alfasel, Teldene and SuperAlkylate.
Alfasel and Teldene will produce 400,000 tons per year of propylene polypropylene while SuperAlkylate will produce 900,000 tons of isooctane annually.
Alujain is in the advanced development stages of these projects and plans to have an equity participation of up to 40 percent in each. The remainder of the funding for the projects is expected to come from a combination of loans from local and international commercial lending institutions, credit from the Saudi Industrial Development Fund, and local, regional and international equity investors. Financial advisers to Alujain are in the process of obtaining this funding.
Alujain Corporation is a joint stock company in the Kingdom. It develops competitive world-scale projects which benefit from the Kingdom’s resource base of reliable and low cost hydrocarbons and minerals, competitive labor costs, available infrastructure and competitive utility prices.
FTH is an investment banking advisory firm based in Saudi Arabia, which provides a wide range of corporate finance advisory services to a diversified client base in the Middle East. Services include mergers & acquisitions, private placements, public offerings, and general strategic and financial advisory.