Riyadh – Mubasher: The board of Methanol Chemicals Company (Chemanol) has recommended on 9 August to increase the capital by SAR 550.49 million through a rights issue.

Chemanol aims to finance and implement its business plans and future projects, in addition to expanding and raising its activities and levels of domestic investments, according to a bourse filing on Tuesday.

Increasing the capital could contribute to reducing production costs and financial revenues for Chemanol’s menthol plant, which the Ministry of Energy gave approval for allocating the required feedstock to expand the facility in order to increase the output by approximately 100,000 tonnes.

The listed firm also aims to raise its financial solvency through the capital hike while reducing borrowing rates and the costs incurred thereof.

Chemanol has appointed Wasatah Capital Company as the financial advisor for the offering.

Last June, the company’s shareholders rejected a capital increase to SAR 1.15 billion from SAR 674.5 million.