Alujain increases capital, PMC award soon

16 July 2004
The local Alujain Corporationhas completed its planned capital increase of SR 346 million ($92 million) to SR 500 million ($133 million). The company says 85 per cent of the existing shareholders subscribed into the capital increase, which was 3.5 times oversubscribed. The local Financial Transaction House (FTH)in March won the lead mandate to advise on the transaction.

Alujain is also in the process of selecting a project management consultant (PMC) by the end of July for its planned propylene project, which will be operated by a limited liability company named The National Propylene Company (Alfasel). The London office of ANZ Investment Bankand Kuwait-based Gulf Investment Corporation (GIC)have been appointed financial advisers to arrange commercial loans for Alfasel, in which Alujain is a major stakeholder, and for a nearby project operated by Yanbu-based Teldene. The ANZ/GIC team are also acting as advisers on Alfasel's equity portion.

The Alfasel project will comprise a 420,000-tonne-a-year (t/y) propane dehydrogenation (PDH) plant, for which the US' UOPwill provide its oleflex technology. The PDH unit will feed the Teldene plant, which will produce about 400,000 t/y of polypropylene. The local National Petrochemicals Company (Natpet), in which Alujain holds a 42 per cent stake, is a major shareholder in Teldene (MEED 26:3:04).

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