RIYADH, 21 March 2006 — The Saudi Research & Marketing Group (SRMG), the biggest publishing house in the Arab world, will go public on April 8, when 4.8 million shares (equivalent to 30 percent of the total stock) will be available at SR230 per share.
This was announced here by the Capital Market Authority (CMA), which said the initial public offering (IPO) would close April 17. The SRMG boasts a total of 13 publications in Arabic, English (Arab News), Urdu and Malayalam, each distinguished in its own field.
The IPO will be managed by the Samba Financial Group, which will also act as its financial adviser.
According to SRMG Chairman Prince Faisal ibn Salman, the company has entered a new phase in its history as a leading company in publishing, advertising, printing and distribution in the Arab world.
Speaking to Al-Arabiya television, Prince Faisal said the approval of the IPO is a tribute to the Saudi government’s wisdom in allowing an Arab media company to make its shares available on the stock market.
Stressing that SRMG is the first Arab media company to go public on the Saudi stock market, Prince Faisal said the move reflects the government’s trust in its sound performance. He also referred to the company’s financial report, which indicates complete transparency in its operations.
The chairman said the SRMG would launch in the near future a new investment project in the Arab world and also globally. This would include exploring the possibility of buying new companies in Europe, America and Japan.
The company posted a record net profit of SR181.4 million last year, 290 percent more than the SR46.5 million profit registered in 2004.
“Last year’s performance was the best in the company’s history. There was a 12 percent increase, or SR113.6 million in sales, compared to 2004 with total sales of SR1.063 billion,” the company said in a statement.
Meanwhile, the group’s board of directors has decided to increase the company’s capital in two phases from SR600 million to SR800 million by transferring from 2005 reserves and profits.