RIYADH: Etihad Atheeb Telecommunications, the second licensed fixed-line operator, launched yesterday an initial public offering (IPO) to sell 30 percent of its shares at SR10 a share for a total value of SR300 million.
The IPO was launched at a press conference chaired by Prince Abdulaziz Ibn Ahmad, chairman of the Constituent Committee of the Board of Directors of Etihad Atheeb Telecommunications, at the Faisaliah Hotel yesterday.
“With the launch of the IPO, a new chapter begins in the annals of the telecommunication sector in the Kingdom,” Prince Ahmad said, pointing out that the new venture would break the decades of monopoly on fixed-line telecommunication services.
“The introduction of a new fixed land line would pave the way for the Kingdom to shift from the conventional to a knowledge-based economy envisaged by Custodian of the Two Holy Mosques King Abdullah,” the prince said, stressing that the company would forge ahead on the solid foundation of Saudi economy which has proved its stability despite the global economic recession. “We would introduce the state-of-the art technology that meets the needs of future development, knowledge, and business expectations.”
Prince Ahmad noted that the Kingdom was one of the countries least affected by the global financial crisis that swept many countries and sectors, and the impact on the ICT sector was minimal.
“It is a joint-stock Saudi company with a strong financial solvency operating in the Saudi market and targeting local beneficiaries. Its policy is in line with the recommendations of the first Arab Economic Summit, which called for liberalizing the telecommunication sector and engaging the private sector in the development process.”
The company’s Chief Executive Officer Ahmed Abbas Sindi said: “The approval from the Capital Market Authority (CMA) to launch the first IPO in 2009 demonstrated the strong confidence in our company.” He added that the company had signed agreements for a number of infrastructure projects worth SR1.2 billion.
The IPO will be open for 10 days, including the closure day, Feb.2. The allotment of shares and oversubscription refunds will be completed on Feb. 7.
Meanwhile, the Saudi stock market increased sharply yesterday. The Tadawul All-Share Index (TASI) edged higher by 5.05 percent or over 230 points to close at 4,786.83. Over SR6.43 billion worth of shares changed hands yesterday.