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Saudi firm plans IPO

JEDDAH — The Al-Kayan Petrochemicals Company is coordinating with the Ministry of Petroleum and Mineral Resources and with the Capital Market Authority (CMA) regarding an IPO and determining the percentage of shares to be floated.

A report in a local daily on Sunday said that Kayan held its founding assembly on Saturday, and discussed the basic system and appointment of auditors. The newspaper quoted some sources as saying that the total number of founding members has reached 60 including three joint stock companies.

The company was earlier reported to have cancelled the investments of 100 Saudi investors holding shares totalling more than 1.5 million, and amounting to over SR75 million.

They had bought shares in Al-Kayan nine months ago to become founding members of the company. The excuse put forward was that the Money Market Authority had determined a maximum of 60 shareholders.

Investors in the company received letters from Al-Kayan informing them that all agreements and contracts were void and their names were taken off the list of founding shareholders. Their money would be refunded. They in turn petitioned the king to confirm their ownership of the stocks and recognise them as founding members.

In a petrochemicals related development, another company that won the contract to search for gas in the Empty Quarter desert began first stage of the project, the same newspaper reported.