Aqaseem Factory for Chemicals and Plastics Company Sukuk Program
Company Overview
Aqaseem Factory for Chemicals and Plastics Company is a public joint-stock company listed on the Saudi Stock Exchange (Tadawul). Established in 2009 as a manufacturer of automotive lubricants, the Company has since achieved significant success in this important industry and has gained a leading position in the automotive lubricant market.
Company's capital
Million SAR
divided into 25 million shares
Aqaseem Factory for Chemicals and Plastics Company intends to issue SAR 500 million in Sukuk through a public offering to establish new operations, acquire existing facilities, and meet its financial and strategic objectives.
Our Vision
To develop and manufacture high-quality products that meet all consumer needs.
Our Mission
To manufacture the best international lubricants and utilize the latest technologies and innovations in the manufacturing of our products to ensure exceptional performance and superior protection for vehicles
Strategy
Aqaseem Factory Company adopts an integrated strategy aimed at increasing revenues and strengthening its market presence by operating production lines at maximum efficiency, utilizing available production capacity to meet demand, and achieving high operating levels.
It also focuses on improving the quality of operations through regular maintenance and developing human capital through training programs and performance-based incentives, while marketing products through diverse sales channels to ensure the highest possible returns.
The strategy also aims to consolidate the Company's presence, support expansion, and enhance the factory's image as a reliable supplier in the Saudi market.
2024 Figures (SAR)
Sukuk
Sukuk are Sharia-compliant financial instruments. They represent the undivided ownership of sukuk holders in tangible assets or investment projects related to the sukuk.
Sukuk Key Advantages
Sharia
Compliance
Stable
Returns
Post-Listing Trading
(Buy and Sell)
Issuer Credit
Rating: -BBB
Series 1 of Aqaseem Factory for Chemicals
and Plastics Company's Sukuk
Million SAR
Years
SAR
Minimum number of sukuk
target investors may subscribe to
Sukuk
Maximum number of sukuk
target investors may subscribe to
Sukuk
Profit Rate
Expected Offering Timeline
Expected date for the commencement of trading Sukuk in the market.
Frequently Asked Questions
What are Sukuk?
Sukuk are Sharia-compliant debt instruments issued by governments and companies for a profit rate that is distributed periodically to finance their budgets, projects, and expansion plans. Sukuk have a maturity date, on which the Sukuk issuer repays the capital raised from investors.
What is the Sukuk Issuance Program?
The Sukuk Issuance Program allows the issuer to issue Sukuk from time to time in a series of independent issuances, subject to the terms and conditions of the Sukuk and the applicable Final Conditions applicable to that series.
What are the Applicable Final Conditions?
The Sukuk issued in respect of each series of the Program are subject to the Final Conditions Document for that series (the Applicable Final Conditions). The Applicable Final Conditions complement the General Sukuk Terms referred to in the Prospectus and may specify other terms and conditions, including the offering period dates, issue size, profit rate, maturity, and other conditions in respect of each series under the Program.
Why does Aqaseem Factory Company issue Sukuk?
The Company intends to use the proceeds from the Sukuk issuance for general business expansion purposes and to meet its financial and strategic objectives.
What is the annual profit rate for Sukuk offering?
The fixed annual profit rate for Sukuk offering is 10% per annum.
When are the periodic dividends distributed?
The fixed periodic dividend distribution for the Sukuk offering is paid semi-annually, starting from the Sukuk settlement date.
What is the term of the Sukuk offering?
The term of the Sukuk offering is five (5) years from the date of issuance. On the expiry date, the issuer repays the capital raised from investors.
Who may subscribe to the offering?
Sukuk under the Program may be subscribed to by eligible persons who fall into any of the following categories:
- Any natural person who has an investment account in the Kingdom and an account with the Securities Depository Center Company “Edaa”;
- Any legal person who has an investment account in the Kingdom and an account with the Edaa; and
- Foreign natural and legal persons in accordance with the rules governing foreign investment in securities and related laws and regulations.
What is the minimum and maximum subscription?
The minimum subscription for each investor is 5 Sukuk equivalent to SAR 5,000, based on the class of each Sukuk of SAR 1,000. There is no maximum subscription limit for investors, as they may subscribe to any number of the offered Sukuk.
For more information or inquiries, please contact us via the following channels:
Issuer
Aqaseem Factory for Chemical and Plastic Industries Company
Financial Advisor, Sole Arranger, and Dealer
Receiving Entities
