Saudi International Petrochemical Co (Sipchem) plans to raise at least 1.5 billion riyals ($400 million) by the first quarter of next year to finance expansion, the firm said on Tuesday.

'We are expecting to raise a minimum of 1.5 billion riyals; hopefully, it can go up to 2 billion riyals,' chief executive Ahmad Al-Ohali told Reuters.

The issuance is expected by the first quarter of next year, the firm said in a bourse statement early on Tuesday.   

Sipchem has mandated one local and one international bank as financial advisers, Ohali said, declining to give more details before it gets approval from the Capital Market Authority (CMA). 

The funds will be used to finance the firm's capital expansion in its new projects. Sipchem will seek approval from the CMA 'very soon', it said in the bourse statement.

Sipchem is planning to spend 400 million riyals to build the first ethyl acetate plant in the region, with the help of French chemical group Rhodia, to rival major commodity producers such as BP. The plant, which will be wholly owned by Sipchem, is expected to start in 2013 and will have a 100,000-tonne annual production capacity. - Reuters