JEDDAH, 13 June 2007 — The Ministry of Commerce and Industry yesterday approved the setting up of five new joint stock companies with a combined capital of SR17.3 billion, including Kayan Petrochemical Company, the Saudi Press Agency said.
Kayan, which is based in Jubail, will have a capital of SR15 billion and 1.5 billion shares, the ministry said, adding that the company’s founders have subscribed to 825 million shares worth SR8.25 billion. The remaining 675 million shares worth SR6.75 billion will be offered to the public.
The Riyadh-based Amlak International is another largest company approved by the ministry.
It has a capital of SR1 billion with 100 million shares. The founders have subscribed to all shares of the real estate development company.
The ministry also licensed another real estate company, Akwan, with a capital of SR750 million, a national energy production company with a capital of SR525 million and a low-cost housing company with a capital of SR25 million.
Meanwhile, the ministry approved the establishment of a chamber of commerce and industry in Mikhwat in the Baha region. A nine-member board of directors has been formed for the chamber.
In a related development, the Capital Market Authority yesterday licensed five new companies — Merrill Lynch Saudi Arabia, National Investment House, Mediterranean Investment, Capital Investors, and International Investment House - to provide services to investors in the Kingdom’s stock market.
The CMA has also allowed Morgan Stanley to join the Capital Group, which has already been licensed. The group will be hitherto known as Saudi Morgan Stanley. The authority has also agreed to increase the capital of Sahara Petrochemicals from SR1.5 billion to SR1.875 billion.