Khoshaim & Associates Advised Petro Rabigh On SAR 5.3 Billion Capital Reduction

Khoshaim & Associates advised Petro Rabigh on SAR 5.3 billion capital reduction

The leading independent Saudi Arabian law firm, Khoshaim & Associates (K&A) advised Rabigh Refining and Petrochemical Company (Petro Rabigh) on the proposed capital reduction of SAR 5.3 billion through a reduction in the nominal value of its Class A shares, Saudi Arabia. The transaction involved reducing the nominal value per share from SAR 10 to SAR 6.85, without any change in the total number of issued shares, thereby enabling the write-off of accumulated losses.

This transaction marks a significant milestone as the first instance of a listed company in Saudi Arabia implementing a capital reduction through a nominal value reduction mechanism following its regulation in 2023, instead of the conventional share cancellation method. The capital decrease forms a key component of Petro Rabigh’s broader financial restructuring strategy aimed at enhancing liquidity, reducing leverage, and strengthening long-term financial resilience.

Petro Rabigh, a joint venture between Saudi Aramco and Sumitomo Chemical, continues to undertake innovative financial transactions, including its earlier Class B shares issuance in 2025.

The Khoshaim & Associates team was led by Zeyad Khoshaim (Managing Partner) and Ghaida Meaigel (Counsel), with support from Reema AlZahrani (Associate) and Mohammed AlThobaity (Associate).

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