Saudi Arabian Mining Company (Maaden) has opened the subscription period for its SR5.6bn ($1.5bn) rights issue.

Shareholders are able to buy shares until 27 November and the issue will increase the company’s share capital from SR9.25bn to SR11.68bn, marking a 26.3 per cent increase in capital. The offer price is SR23 per share.

Maaden first announced the rights issue in May this year with the intention of using the proceeds to fund investments in the phosphate industry. In particular the funds will support the building of an integrated facility for phosphate production at Waad al-Shamal Mineral Industrial City and Ras al-Khair. It will also be used to fund its aluminium operations.

Maaden has also raised project financing this year to support its phosphate mining activities. It closed a $5bn project finance facility raised via Saudi Arabian and international banks at the end of June.