RIYADH, 18 October 2006 — Al-Babtain Power & Telecommunication Company yesterday announced details of its upcoming initial public offering (IPO) scheduled immediately after the Eid holidays.
The IPO will be open for subscription for 10 days from Nov. 4 to13. Each share is priced at SR40 per share. The minimum number of shares that an individual investor can subscribe is 10 and the maximum is 25,000.
Mohammad Al-Babtain, chairman, Al-Babtain Power & Telecommunication Company, said: “We’re grateful to the CMA (Capital Market Authority) for approving our IPO. Al-Babtain’s strategic objective is to be one of the leading companies in power and telecommunications in the MENA Region, satisfying its customers. Al-Babtain is a well-established company since 1955 and enjoys very good reputation in the Saudi market as well as MENA region. The IPO is happening at a very opportune time when our business is developing rapidly and gaining in strength. The IPO is a way for Saudi investors to be personally involved in the growth of a business that is literally helping to create an even brighter future for the Kingdom.”
HSBC has been appointed as the financial adviser and lead manager for the IPO, while Saudi British Bank (SABB) is the sole underwriter. Ioannis Karapatakis, MD, global investment banking advisory of HSBC Saudi Arabia Ltd., said: “The performance of Al-Babtain is extremely impressive, and the company is operating in a sector where there are clearly enormous opportunities for growth. This IPO is indeed another milestone for HSBC. We’re honored to serve as the lead and sole adviser.”