RIYADH, 5 July 2007 — Kingdom Holding Company (KHC), one of the world’s largest and most diversified private investment groups, said yesterday that the Capital Market Authority (CMA) of Saudi Arabia has approved its initial public offering of 315 million shares with an offer value of SR3.228 billion ($860 million) at a price of SR10.25 per share. KHC also said that it has appointed Samba Financial Group as financial adviser, lead manager and lead underwriter.
The total share capital of KHC is SR63 billion constituting 6.3 billion shares. Following the advice from KHC’s financial adviser Samba, the CMA has approved an offering of five percent of the company’s total shares, representing 315 million shares with a value of SR3.228 billion. It is believed by the financial advisers that the percentage offered would ensure liquidity in the aftermarket and provide a unique investment opportunity for Saudis.
The IPO will open for subscription from July 10 to 18. The minimum share allotment will be 50 shares of SR10.25 each with no limit on the maximum number of shares that can be subscribed for. The offer is available to Saudi nationals and institutional investors. Fifty percent of the offer shares will be allocated to institutional investors and the rest to retail investors.
KHC is one of the largest and most diversified private investment companies with holdings in some of the world’s best known companies and premier brands. KHC focuses on investing in high performance companies with leading brandnames.
KHC is based in Saudi Arabia and chaired by Prince Alwaleed bin Talal who works alongside its board of four executive directors and five non-executive members.
Prince Alwaleed said: “KHC is a premier investment company. It is the biggest Saudi company in the Kingdom and ranked number one among the Gulf’s 50 most admired companies. KHC has chosen to list on its home market given the underlying strength in the Saudi economy and KHC’s belief that the Tadawul will grow and strengthen as it matures.”
Essa Al-Essa, Samba’s CEO, said: “We are proud to be the financial adviser and IPO manager to one of Saudi Arabia’s most prestigious companies, which reflects the reputation and track record Samba has for managing Saudi Arabia’s biggest and most successful IPOs.
Given the magnitude of this IPO, it may lead to additional listings on the Saudi stock market, creating greater depth and liquidity in the Tadawul. In short, we believe KHC will create considerable momentum in the Saudi stock market and promote its future growth and stability.”
KHC has appointed six receiving banks to ensure investors have the access to conveniently subscribe to the IPO. The six banks are Samba, Saudi Investment Bank, SABB, Banque Saudi Fransi, Arab National Bank and Riyad Bank.