Saudi Petrochemicals - NCBC

Company descriptionOverviewEstablished in March 2008, National Petrochemical Company (PetroChem), 47.7%owned by Saudi Industrial Investment Group (SIIG – 2250.SE), is engaged in thepetrochemical market through its subsidiary - Saudi Polymers Company. Petrochemowns a 65% stake in Saudi Polymers Company located in Al-Jubail Industrial City.The remaining 35% stake is owned by Arabian Chevron Philips Petrochemical Ltd.Saudi Polymers Company’s petrochemical complex is under-construction and willhave a total annual production capacity of 3.4 mn mtpa. Its petrochemical productportfolio includes 1.2mn mtpa of ethylene, 0.4mn mtpa of propylene, 1.1mn mtpaof HDPE and LDPE (0.55mn mtpa each), 0.4mn mtpa of polypropylene, 0.2mn mtpaof polystyrene and 0.1mn mtpa of hexene. Saudi Polymers Company is in preoperationalstage and is expected to commence operations in 2011. We have takena conservative assumption that the complex would start commercial operations in2Q 2012.In July 2009, Petrochem raised SR2.6bn in its IPO by offering 240mn shares to thepublic and 20 mn shares to SIIG. Out of the 240mn shares, 80mn shares each wereallocated to General Organization for Social Insurance (GOSI) and Public PensionAgency (PPA). Following this, SIIG’s stake reduced to 47.7% from 95% held earlier,GOSI and PPA each owns 16.2%, while the remaining 17.6% is held by the public.Exhibit 46: Shareholding pattern%GOSI, 16%PPA, 16%SIIG, 48%Public, 20%Source: Tadawul27 April 2010 PETROCHEM - INITIATING COVERAGE63