Kingdom Holding Company (“KHC”), one of the world’s largest and most diversified private investment groups today announced that the Capital Market Authority (“CMA”) of Saudi Arabia has approved its initial public offering (“IPO” or "Offer") of 315 million shares with an Offer value of SR 3.228 billion (US$860 million) at a price of SR 10.25 per share. KHC also announced that it has appointed Samba Financial Group as Financial Advisor, Lead Manager and Lead Underwriter.
The total share capital of KHC is SR 63 billion constituting 6.3 billion shares. Following the advice from KHC’s financial advisor Samba, the CMA has approved an offering of 5% of the Company’s total shares, representing 315 million shares with a value of SR 3.228 billion. It is believed by the financial advisors that the percentage offered would ensure liquidity in the aftermarket and provides the Saudi people with a unique investment opportunity.
The IPO will open for subscription from 10th July 2007 to the 18th of July 2007. The minimum share allotment will be 50 shares of SR 10.25 each with no limit on the maximum number of shares that can be subscribed for. The Offer is available to Saudi nationals and institutional investors. 50% of the Offer shares will be allocated to institutional investors and the rest to retail investors.
KHC is one of the largest and most diversified private investment companies with holdings in some of the world’s best known companies and premier brands. KHC focuses on investing in high performance companies with leading brand names.
KHC is based in Saudi Arabia and chaired by HRH Prince Alwaleed bin Talal who works alongside KHC’s board of four executive directors and five non-executive members.
Commenting on the planned IPO, HRH Prince Alwaleed said: “KHC is a premier investment company. It is the biggest Saudi company in the Kingdom and ranked number one among the Gulf’s 50 most admired companies. KHC has chosen to list on its home market given the underlying strength in the Saudi economy and KHC`s belief that the Tadawul will grow and strengthen as it matures.”
Essa Al Essa, Samba’s CEO, commented: “We are proud to be the financial advisor & IPO manager to one of Saudi Arabia’s most prestigious companies which reflects the reputation and track record Samba has for managing KSA’s biggest and most successful IPOs. Given the magnitude of this IPO, it may lead to additional listings on the Saudi stock market, creating greater depth and liquidity in the Tadawul. In short, we believe KHC will create considerable momentum in the Saudi stock market and promote its future growth and stability.”
KHC has appointed 6 receiving banks to ensure investors have the access to conveniently subscribe to the IPO. The 6 banks are Samba Financial Group, The Saudi Investment Bank, SABB, Banque Saudi Fransi, Arab National Bank and Riyad Bank.
|
