RIYADH, 17 July 2007 — The Kingdom Holding Company (KHC) IPO (initial public offering) statistics at the end of Sunday show that the number of subscribers reached 598,000 and the total money pumped SR895.4 million, thus covering 55.5 percent of the total shares offered to the retail part, Eisa Al-Eisa, managing director and CEO of Samba Financial Group, the financial adviser, lead manager and underwriter of KHC IPO, said yesterday.
KHC Chairman Prince Alwaleed said: “I am very pleased with the response to the IPO to date and am delighted that the Saudi people recognize the unique investment opportunity KHC represents. Investors’ participation in this IPO will enable the public to join us in building KHC’s future together.”
Al-Eisa noted that IPO transactions carried out by electronic channels (telebanking, Internet and ATMs) had reached 87 percent of the total IPO subscriptions around the Kingdom, reflecting the high degree of flexibility that the electronic channels provide and the tremendous efforts made by Samba and the receiving banks to ensure the ease of subscription and customers’ satisfaction.
Al-Eisa Added: “The response to the IPO has been great and it is progressing very smoothly. All IPO transactions have recorded steadily increased levels, which reflect Saudi awareness of this unique investment opportunity and also an increased awareness of electronic subscription channels which is saving their time and effort. Electronic channels are also enabling the receiving banks to deal with this important IPO with great efficiency and facilitate the high follow-up from local, regional and international financial circles.”
Meanwhile, Kingdom Hotel Investments (KHI), a leading international hotel and resort investment company chaired by Prince Alwaleed, and the emerging market hotel investment vehicle of KHC, announced the acquisition of the Raffles Grand Hotel d’Angkor in Siem Reap and the Raffles Hotel Le Royal in Phnom Penh for a total consideration of approximately $35 million. These acquisitions are KHI’s first in Cambodia and reflect the group’s investment and diversification strategy in high growth emerging markets.
The Raffles Hotel Le Royal opened in 1929 and is located in the heart of Phnom Penh, the commercial, political and cultural hub of Cambodia. This 170-room French-colonial style hotel is situated in a prime location on 18,000 square meter leasehold land. It has excellent access to the international airport and city attractions such as the Royal Palace and National Museum. It is also located opposite the newly constructed American Embassy.
The Raffles Grand Hotel d’Angkor is the leading hotel in the northern resort city of Siem Reap and has been awarded many international accolades. Considered as a national landmark, the 125-room French-colonial style hotel opened in 1932. It is located in 60,000 square meter leasehold landscaped grounds, just 8 km away from the world-famous temples of Angkor Wat, a UNESCO world heritage site.
These transactions further expand KHI’s portfolio in Asia to eight properties in six countries, now including the rapidly growing Cambodian hotel market. Over the last eight years, according to the WTTC, tourist arrivals have increased at an impressive 19.1 percent compound annual growth rate into Cambodia.
Both hotels will continue to be managed by Raffles Hotels & Resorts.