RIYADH, 1 January 2003 — Saudi Telecom Company has ended speculations about its possible share price when it is launched in the stock market next month. The opening price will be SR170 each, the same as is fixed for the initial subscription, the company’s General Investment Fund announced.
According to a banking source, the fund has set up a committee to study when to start trading in the stock market. Two possible dates being considered are Feb. 2 and 16.
STC has also decided to accept subscription applications presented with a power of attorney, according to Ibrahim Al-Rumaih, assistant secretary-general of the investment fund. Earlier, the company had said that a person can subscribe only for himself and his family members. The power of attorney will be applicable to other operations related to the shares such as equity trading after the shares are allocated to subscribers, Rumaih added.
More than 408,500 telephone calls inquiring about the method of subscription were received at the subscription service center at the STC in the past few days, according to an official of the company. Of these, 145,647 calls were about the size of the company’s capitalization, number of the floated shares and the share price while 86,464 calls were about the method of subscription and 45, 761 about the banks which are authorized to receive the subscription. The company has posted 24 employees with special training to receive subscription inquiries. The service is available at the toll free number 1777.
STC made it clear in an earlier statement that the subscription, which can be made only by Saudi citizens, has no ceiling in terms of their number. The last date for the subscription will be Jan. 6 and the share allocations will be announced within one month after that date.
Meanwhile, the real estate businessmen in Riyadh ruled out that the current STC flotation would adversely affect the real estate market. Suleiman ibn Saeedan, a leading figure in market, said that the flotation will only make a minor impact on the cash flow in the market, and that too, for a limited period of two months.
