Kingdom Holding Company (KHC) has subscribed to 7,009,364 shares of Tasnee’s rights issue offering for the value of 130.8 million Saudi riyals($35m).

KHC, chaired by Prince Alwaleed bin Talal, is the majority shareholder in Tasnee (National Industrialisation Company).

The deal takes KHCs total number of shares in Tasnee 28,701,374 and 6.23 per cent of the company’s capital.

KHC’s local investments and development executive director and Tasnee board member Talal Al Maiman commented: “We have taken the decision to subscribe to our pro rata of the rights issue due to our strong belief that Tasnee is a well run company with huge potential to deliver rewarding returns to its shareholders.”

Tasnee increased its capital by 31.7pc with a rights issue offering of 111.11m shares to its subscribers that ended last week. The share price consists of a par value of 10 Saudi riyals and an issue premium of 8 Saudi riyals. The rights issue was limited to the shareholders who are registered in the shareholders register at the general assembly day on May 26, where the price of the share was determined by the company’s board.

Tasnee was founded in 1985 as the first Saudi joint-stock company owned by the private sector.

It has been active in marketing its products and the establishment of many diversified projects including petrochemicals and has invested in other successful companies to support projects in area such as plastics, engineering, minerals and manufacturing services. – TradeArabia News Services