JEDDAH, 2 December 2007 — Ibn Rushd (Arabian Industrial Fibers Company) has decided to increase its capital from SR3.55 billion to SR8.51 billion to pay off debts to Saudi Basic Industries Corp. (SABIC) and Public Investment Fund (PIF). The decision was taken yesterday by an extraordinary meeting of the company’s general assembly in Yanbu.
Ibn Rushd, a subsidiary of SABIC, said in a statement on the Tadawul website that the state-owned PIF has joined the company as a partner.
SABIC’s stake in Ibn Rushd after the capital increase will be 45.19 percent, while PIF will hold 33.51 percent, and the rest will be owned by a dozen other firms. The company will issue more shares by converting the debts owed to the PIF.
In a previous meeting, Ibn Rushd’s general assembly had approved a strategic plan to make it a profit-making company by carrying out a series of programs.
Meanwhile, after falling slightly last week, the Saudi stock market was in positive territory yesterday. The Tadawul All-Share Index (TASI) closed 19.13 points higher at 9,483.53 points as the new Jabal Omar Development Co. started trading for the first time yesterday.
Jabal Omar failed to make any major impact on Tadawul with its shares opening at SR18.50, reaching as high as SR19.25 and as low as SR16.25 before closing at SR17.
Over SR2.55 billion worth of Jabal Omar shares changed hands yesterday. Jabal Omar became the 106th company to be traded on Tadawul. It is traded in the services sector.
Abdul Rahman Al-Samary, director of E-Stock, attributed the speedy movement witnessed by the Saudi stock market during the last few weeks to the limited time investors had before the end of the year. “This situation was expected between the two Eids,” he said in reference to Eid Al-Fitr and Eid Al-Adha.
He said the end of the year results of companies as well as new initial public offerings would make the market more active in the coming months. He said the present condition of the market would attract more investors. In the banking sector, shares of the Saudi Investment Bank and Bank Albilad fell 0.55 percent and 1.35 percent, respectively, while shares of other banks increased. Shares of Bank AlJazira remained unchanged yesterday.
SABIC edged higher by 0.31 percent to SR159.50.
The cement sector was in the red as shares of all companies declined yesterday.
In the telecom sector, shares of Saudi Telecom Co. (STC) fell 0.65 percent to SR75.50 and Etihad Etisalat by 1.04 percent to SR71.
Saudi Electricity Co. shares also dropped 1.78 percent to SR13.75.
In the insurance sector, shares of Tawuniya remained unchanged at SR43 while shares of all other companies surged yesterday.
Al-Ahlia Insurance Co. was the top gainer as its shares jumped 9.64 percent to SR125. Shares of Gulf Union Cooperative Insurance Co. and Saudi Indian Company for Cooperative Insurance increased by 8.17 percent to SR69.50 and 5.84 percent to SR113.25, respectively.
The stock market turnover was over SR8.61 billion yesterday.
