Dubai: Methanol Chemicals Company (Chemanol), one of Saudi Arabia's market leaders in specialty chemicals, is to launch a 723.6 million Saudi riyal initial public offering (IPO) on Monday.

The offering will last from August 11 to 20, and present 60.3 million shares to subscribers; representing 50 per cent of Chemanol's total issued share capital.

Samba Capital has been appointed the financial advisor, lead manager and lead underwriter. Samba Capital recently signed agreements with 11 receiving banks representing the kingdom's major financial institutions.

Eisa Al Eisa, Samba Capital chief executive officer and managing director announced that the share price will be of 12 riyals, including premium.

"Subscribers will be able to subscribe through all local banks in the kingdom," he said.

"Samba Capital and all receiving banks have taken all necessary steps for the IPO in a way that allows subscriptions to take place via different channels such as e-banking, phone banking, and ATMs in order to increase ease and flexibility for the subscribers."

Chemanol was previously known as Saudi Form-aldehyde Chemical Company Limited (SFCCL) which is a private sector enterprise, developed, promoted and financed by a group of leading industrialists from the Gulf Co-operation Council (GCC) countries.

Established in 1989 with a start-up capital of 5.5 million riyals ($1.47 million), Chemanol has an impressive track record of growth, performance, has won many awards and is one of the biggest producers of formaldehyde and derivatives. Once the IPO is completed the company's capital will be 1.2 billion riyals ($320 million).

Chemanol has 22 production units generating an annual revenue of approximately 461 million Saudi riyals ($123 million).

Mazen Allahiq Al Nuaimi, Chemanol's managing director, expressed his satisfaction at seeing the completion of the IPO preparations. "This would not have been possible without 19 years of success and achievements and with this IPO, Chemanol is expanding and is continuing its journey," he said.

Update: Chemical complex

  • Chemanol's petrochemical complex is located in Jubail Industrial City.
  • Production started in 1992 with an output of 24,000 metric tonnes per annum (mtpa). Today, production output is 426,600mtpa generating revenues of approximately $123 million a year.
  • The plant exports to 50 countries.