Saudi Kayan Block Trade: SAR 3.4M Deal Crosses Tadawul

Saudi Kayan Petrochemical Co. saw a SAR 3.4 million negotiated deal on the Saudi Exchange on Monday, June 10. The trade appeared on Tadawul's negotiated-deal window, used for off-order-book block transactions. The filing does not name the parties or the price relative to the last trade.

Saudi Kayan, a SABIC affiliate, produces polypropylene and polyethylene. The company operates in a sector where global margins have been under pressure from weak demand and high feedstock costs. The negotiated deal lands at a time when Saudi industrial output is shrinking. A separate report showed Saudi industrial output plunged 19% as OPEC+ cuts bite. Lower crude production from OPEC+ cuts reduces the supply of naphtha and ethane, squeezing plants that depend on associated gas.

Negotiated deals on Tadawul are executed outside the continuous order book. They are typically used for block trades between institutional investors or for pre-arranged transfers. The exchange requires disclosure when the value exceeds a certain threshold. It does not identify the counterparties. Monday's filing gives no indication of whether the buyer or seller initiated the transaction.

The deal's size relative to Saudi Kayan's market value is not available from the filing. Tadawul negotiated deals are recorded at transaction value, not as a percentage of outstanding shares. Without a market cap figure for Monday's session, the block's proportional impact remains unclear.

The next scheduled update from Saudi Kayan is its quarterly earnings report. That will show whether margin pressure has eased. Tadawul's negotiated-deal window remains one of the few public records of large off-exchange trades. No further details on Monday's transaction are available from the exchange.