Riyadh – Mubasher: Saudi Arabian Mining Company (Maaden), with a 65% stake owned by the kingdom's sovereign investor Public Investment Fund (PIF), reportedly plans to raise as much as $5 billion via a rights offering, people familiar with the matter told Bloomberg News.

The issuance proceeds will be used to finance potential acquisitions over the coming period.

The Saudi-based company is working with HSBC Holding’s unit in the kingdom on the possible offering that could take place by the end of 2019.

The size of the rights issue hasn’t been set yet and could end up being smaller than $5 billion, according to sources.

The Saudi sovereign investment fund would also participate in the rights issue through a debt-for-equity swap and exchange its loans to Maaden subsidiaries into equity, the people told the New York-based news agency.