RIYADH, 10 June 2008 — Albilad Company for Investment, the investment arm of Bank Albilad, has signed an agreement with Saudi Integrated Telecom Company (SITC) whereby the Albilad Company acts as the financial consultant, IPO manager and coverage entrepreneur for the Initial Public Offering (IPO) of SITC, who was awarded the second license for fixed telephone service in the Kingdom. It shall announce 25 percent of its capital, i.e. SR250 million of its SR1 billion capital, for IPO at a par value of SR10 per share. Signing the agreement was Abdul Rahman M. Al-Issa, CEO, Albilad Company for Investment and Mohammad Al-Sanousi on behalf of SITC.
Al-Issa expressed his appreciation to the SITC Management for selecting Albilad for Investment. He reaffirmed the capabilities of Albilad for Investment to handle the IPO professionally, using a qualified team with experience acquired from similar recent appointments. The IPO will be executed with transparency. This includes releasing daily statements during the IPO period reflecting the IPO’s progress, which will be published through various media channels.
For SITC, Al-Sanousi stated that the agreement with Albilad Company for Investment is aimed at satisfying objectives of the Government and the Company in giving an opportunity to citizens to participate in the anticipated success of the company. By virtue of this IPO, SITC also aims to broaden its customer base and acquire greater market share in the communications and IT sector. In an unprecedented initiative in the Kingdom, SITC was awarded a license to offer fixed telephone services pursuant to Royal Decree no. 40 dated 18/02/1429H, corresponding to February 25, 2008.
Al-Sanousi said that the company services shall reach at least one million residential and commercial locations in the Kingdom. He pointed out that a partnership with PCCW, the largest telecom service provider in Hong Kong and a number of Far-East Asian countries, paves the way for the transfer of technology and know-how and best worldwide practices adopted to deliver unique, advanced fixed line services in the Saudi market. This shall serve individuals and enterprises by providing them with true broadband Internet and connectivity services, with speeds up to 100 mbps, in addition to video on demand, IPTV and content offered through various wireline and wireless access means.