JEDDAH, 20 June 2007 — The initial public offering of Saudi Printing & Packaging Company (SPPC), a subsidiary of Saudi Research & Marketing Group (SRMG), will start on June 30. During the five-day event, the company will sell 30 percent its shares.

“The Saudi Printing & Packaging Company will launch a 30 percent initial public offering on June 30,” the CMA said in an official statement. The company has a capital of SR600 million.

The SPPC offers 18 million shares, each with a value of SR22 inclusive of the nominal value of SR10 and a premium of SR12, the CMA said. This will bring the total value of offered shares to SR396 million.

The CMA has allocated 12.6 million shares or 70 percent of the total offered shares, to investment funds and the remaining 5.4 million shares to Saudi individuals.

SRMG, the largest media company in the Middle East and publisher of several leading newspapers such as Arab News, Asharq Al-Awsat, Al-Eqtisadiah, and Arriyadiah, has appointed Samba Financial Group as manager of the IPO.

“The IPO manager will have the right to reduce the number of shares allocated to investment funds to nine million or 50 percent of the total if the number of individual subscribers exceeds 540,000 or as a result of any other condition with CMA’s permission,” the statement said.

Prince Faisal bin Salman, chairman of SRMG, described the IPO as one of the major turning points of the printing company. “It will certainly contribute to strengthening and diversifying its base of shareholders and support its future trends,” he said.

SPPC is one of the leading printing companies in the region and has made several achievements, the prince said. The company has made rapid strides in terms of providing quality service, making excellent financial performance and expanding its activities, he pointed out. “SPPC is looking forward to achieve new heights of progress based on a series of encouraging factors that remain the secret of its success story,” the prince said.

SPPC has established strategic relations with leading publishing companies, gained a lot of experience and expertise and acquired the latest printing technology.

Eissa Al-Eissa, CEO of Samba, said his bank would take the necessary measures to make the IPO a resounding success, making use of its long-standing expertise in IPO management. “SPPC’s IPO is a new experiment in the market as it’s the first offering from a printing company. SPPC has won huge public confidence as a result of its good history, comprehensive services, expanding vision and strong base,” Al-Eissa said, adding that this would encourage a large number of people to purchase SPPC shares.

The SRMG chief said the returns from the IPO would be used in accordance with the decision taken by the board to strengthen the group’s position as a market leader at local and regional levels. “We’ll use the returns from the IPO to expand the group’s activities, either through entering into new investment projects or by further strengthening the group,” he said.

Commerce and Industry Minister Dr. Hashim Yamani recently approved SPPC’s shift to a closed joint-stock company with a capital of SR600 million ($160 million). The company is licensed to carry out various activities such as printing, management, operation and maintenance of printing projects; wholesale and retail sale of printing equipment and materials; printing of newspapers, magazines and books in different languages locally and internationally; advertising and propaganda work locally and internationally; and production and distribution of intellectual, scientific and media works. SPPC prints about 55 newspapers and magazines.