(MENAFN) Arabian Plastic Industrial Co. (Apico) has secured SR105.5 million (USD29 million) in funding from the Saudi Investment Bank to build a new plastics factory in Riyadh. The Jeddah-based company will use the funds, which come in the form of working capital and a medium-term loan, to expand production and build the new facility. The company had signed a land lease contract with the Saudi Authority for Industrial Cities and Technology Zones in 2022 in relation to the factory. Of the SR105.5 million, SR55.5 million will be spent on the expansion, while the remainder will be earmarked for existing facilities.
Apico made its debut on Saudi Arabia's stock market in October 2022, and its shares climbed 18.52% above its listing price on the first day of trading. The company offered 1 million shares, or 20% of its SR50 million market capitalization. The offering coverage was 15.43 times oversubscribed, with the offer price set at SR27 per share. Established in 1996, Apico serves customers across different sectors, including Almarai Co., flynas, TotalEnergies, and Nahdi Medical Co.
The funding from the Saudi Investment Bank is a significant boost for Apico, which is looking to expand its production capacity and build a new facility in Riyadh. The plastics industry has seen significant growth in Saudi Arabia in recent years, driven by the country's economic diversification efforts under the Vision 2030 plan. The new factory will help Apico to meet the growing demand for plastics and serve a wider range of customers across different sectors.
The funding also highlights the support of the Saudi Investment Bank for the country's industrial sector and its commitment to providing financing for companies looking to expand their operations. The bank's financing will help Apico to create jobs, boost economic growth, and contribute to the country's economic diversification efforts. As the plastics industry continues to grow in Saudi Arabia, Apico is well-positioned to capitalize on the opportunities presented by the expanding market and establish itself as a leading player in the industry.
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