RIYADH. The Saudi government has approved the establishment of the Saudi Kayan Petrochemical Co., paving the way for the company to float 45 percent of its capital to Saudi public investors. The founders have subscribed in 825 million shares worth 8.25 billion Saudi riyals ($2.2 billion) and the company will offer an initial public offering of 675 million shares to the Saudi stock market at ten riyals a share. Saudi Basic Industries Corporation (Sabic) owns 35 percent of the new petrochemical entity. Saudi Kayan plans to go on-stream by the end of 2009 with an annual capacity exceeding 4 million tons of varied petrochemical products and Sabic marketing units will help sell Kayan products in international markets. Saudi Kayan Petrochemical has also secured approval from the Saudi stock market regulator to sell $1.8 billion in shares in April. The IPO is open only to Saudi Arabian nationals.

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