JEDDAH, 28 June 2007 — The Saudi Printing & Packaging Company (SPPC), a subsidiary of Saudi Research & Marketing Group (SRMG), offers 18 million shares worth SR396 million to Saudi investors in a five-day initial public offering (IPO) that begins Saturday.
Eissa Al-Eissa, the CEO of Samba Financial Group, which manages the IPO, said 5.4 million shares or 30 percent of the total offered shares, have been allocated for Saudi individuals. The remaining 12.6 million shares would go to investment funds.
“The IPO will begin on Saturday (June 30) and end on Wednesday evening (July 4),” he said, adding that Samba has completed all arrangements to make the IPO, the first by a printing company in the Middle East, a big success.
“We have reached agreements with other banks such as the National Commercial Bank, Riyad Bank and Banque Saudi Fransi to provide all facilities to subscribers,” Al-Eissa said.
Prospective investors can buy an SPPC share at the rate of SR22 inclusive of the nominal value of SR10 and a premium of SR12. The number of shares allocated to individual subscribers could be increased to 50 percent if their number exceeds 540,000.
“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.
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, with a capital of SR600 million, is one of the leading printing companies in the region. The company has made rapid strides in terms of providing quality service, making excellent financial performance and expanding its activities.
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). SPPC currently prints about 55 newspapers and magazines.