JEDDAH, 19 December 2005 — Many banks across the Kingdom had no choice but to call police to control the crowds of prospective subscribers for YANSAB (Yanbu National Petrochemicals Company) shares. Thousands of Saudis rushed to buy shares on the first day of the initial public offering (IPO) on Saturday. The IPO ends on Dec. 29.

Samba Financial Group, which was appointed to manage the IPO, instructed its clients to complete their subscriptions through its ATMs and website as part of efforts to reduce crowds in its branches. Many buyers in Jeddah complained that the bank’s decision to restrict subscription to only three branches had caused the problems.

According to local press reports, the first day of the IPO included fist fights in front of bank branches in Najran, Al-Ahsa, Raniyya, Dhahran Al-Janoub, Taif and other parts of the country. In Hafr Al-Batin, the bank’s branch called for police when a heated verbal exchange broke out between those waiting to buy shares. In Tabuk, police declared an emergency before the bank opened its doors. A bank manager there said his branch handled about 30,000 subscribers on the first day. Muhammad Khoja, manager of National Commercial Bank (NCB) in Tabuk, said he had distributed more than 3,000 subscription forms to Saudi men and women.

Ziyad Bin Mahfouz, manager of subscriptions and dividends at NCB said that 54,598 people had subscribed for 3.7 million shares worth SR187 million on the first day. He said the bank’s Internet service, ATMs and telebanking service facilitated the IPO.

YANSAB, an affiliate of Saudi Basic Industries Corporation (SABIC) is offering 35 percent of its shares to the public — more than 39 million shares worth SR2 billion. The company, which has a capital of SR5.6 billion, offers a minimum of 10 shares and a maximum of 5,000. In addition to the 35 percent public offering, SABIC owns 55 percent of YANSAB shares. SABIC’s partners, IBN RUSHD and TAYFm including national and regional establishments and companies own 10 percent.

YANSAB, which is currently under construction in Yanbu Industrial City, is designed to become one of the world’s largest petrochemical complexes with an annual capacity exceeding four million tons. It is expected to go on stream by 2008. The complex is part of SABIC’s plan to reach a total annual capacity of 60 million tons in order to maximize its contribution to national development programs.

YANSAB uses the latest world-class technologies in its plants, including SABIC license-owned technologies such as the new high-tech process of converting aromatic compounds to benzene and the production of polyethylene. It will produce 1.3 million tons of ethylene, 400,000 tons of propylene, 900,000 tons of polyethylene, 400,000 tons of polypropylene, 700,000 tons of ethylene glycol, 250,000 tons of benzene, xylene and toluene, and 100,000 tons of butane-1 and butane-2.