RIYADH, 14 March 2007 — Banque Saudi Fransi signed yesterday a lead manager and underwriting agreement with Saudi Fransi Cooperative Insurance Company (SFCIC) and another lead manager accord with Saudi United Cooperative Insurance (Wala’a Insurance).
The Capital Group is the financial adviser for both initial public offerings (IPOs). The two insurance companies’ IPOs will run simultaneously.
Saudi Fransi Cooperative Insurance Company is a joint-stock company, which will offer 3.1 million shares priced at SR10 each, representing 31 percent of the company’s capital starting from March 17 to 26. Subscription will be limited to Saudis only. Divorced or widowed Saudi women with children from non-Saudi husbands can subscribe in the names of their children for their own benefit.
Moreover, Saudi United Cooperative Insurance also appointed BSF as lead manager for its IPO of eight million shares priced at SR10 per share, representing 40 percent of the company’s total capital of SR200 million.
The Capital Group is the financial adviser and Bank AlJazira will be the underwriter for this offering.
The subscription period is from March 17 to 26. Subscription to the company’s shares will be confined to Saudi individuals.