DALIPAL HLDG (01921) announced that on January 11, 2026 (Saudi time), the company and Dalipal International entered into a share purchase agreement with Zumar, an independent third party. Under this agreement, the company intends to sell a 40.0% equity stake in Dalipal International to Zumar for a total consideration of 3 million Saudi Riyals. Upon completion of the share purchase, the company will retain a 60.0% stake in Dalipal International. Dalipal International is primarily engaged in the research, development, manufacturing, and sales of seamless stainless steel pipe products, including oil country tubular goods, drill pipes, hydrogen transportation pipes, and high-pressure boiler tubes.
The announcement stated that the group will construct facilities in Saudi Arabia, including a production facility with a total designed annual capacity of 1.1 million tons for various oil country tubular goods and hydrogen pipelines, to serve international markets such as the Middle East and Africa. Introducing Zumar, a Saudi strategic investment and development enterprise, as a shareholder of Dalipal International brings Zumar's resources and experience to the company. This is expected to play a constructive role in implementing the project and expanding the group's business footprint in the Middle East, aligning with the group's development strategy and long-term interests.
Following the completion of the share purchase, the company and Zumar have agreed, subject to a funding plan to be subsequently agreed upon for the project, to initially increase Dalipal International's share capital to between $150 million and $240 million in proportion to their respective shareholdings in Dalipal International. This capital increase, through the subscription, allotment, and issuance of shares in Dalipal International, will partially fund the total phase one project cost. Consequently, subject to the funding plan to be agreed upon by the company and Zumar, the company has agreed to initially contribute up to $144 million to Dalipal International.
The remaining amount of the total phase one project cost will be financed through third-party debt financing, shareholder loans, or shareholder cash contributions (as agreed from time to time). The project will be constructed in two phases, with a total designed capacity of 1.1 million tons per year. The first phase of the project is expected to involve an investment of $600 million.
Furthermore, the company has applied to the Stock Exchange for the resumption of trading of its shares, effective from 9:00 a.m. on January 13, 2026.