Khoshaim & Associates (K&A) successfully advised Rabigh Refining and Petrochemical Company (Petro Rabigh) on its SAR 5.3 billion capital decrease through a reduction of the nominal value of its Class A shares.

This transaction marks the first time a listed company in Saudi Arabia has reduced its capital through a nominal value reduction mechanism following its regulation in 2023, as opposed to the traditional share cancellation method. Under this structure, the nominal value of Petro Rabigh’s Class A shares was reduced from SAR 10 to SAR 6.85 per share, with no change to the total number of issued shares, thereby writing off SAR 5.3 billion of the accumulated losses. 

Petro Rabigh is a major refining and petrochemical company and a strategic joint venture between Saudi Aramco and Sumitomo Chemical. This capital decrease forms a key pillar of a broader and highly complex financial restructuring aimed at strengthening liquidity, reducing leverage, and enhancing long‑term financial resilience, and follows the ground‑breaking Class B shares issuance in 2025, another first‑of‑its‑kind transaction in the Saudi market, which K&A also led.

The transaction was led by Managing Partner Zeyad Khoshaim and Counsel Ghaida Meaigel, with support from associate Reema AlZahrani and associate Mohammed AlThobaity.

This transaction further reinforces K&A’s position as the go-to firm for novel and complex capital markets transactions, having led and completed three first‑of‑their‑kind transactions in the past 12 months alone. K&A’s Capital Markets practice continues to be consistently ranked Band 1 / Tier 1 by leading international legal directories, with its lawyers individually recognized across all major rankings.