JEDDAH, 7 July 2004 — Financial Transaction House (FTH), an investment banking advisory firm based in Saudi Arabia, announced yesterday the successful completion of the allocation of the capital increase for Alujain Corporation, a Saudi joint stock company. After the capital increase, Alujain Corporation’s paid up capital will be about SR700 million. FTH was the lead financial advisor and offering manager in the transaction.
The capital increase consisted of a rights issue to current shareholders and was about three times oversubscribed with current shareholders’ participation of about 93 percent.
Due to the oversubscription by current shareholders having the right of first refusal, there was no need for the capital increase to be offered to the public.
Minimum allocation was two shares for every one share owned. Additional shares were allocated to shareholders who requested more shares based on the original share ownership prior to the capital increase on June 1 this year.
Shares will be transferred to subscribing shareholders and excess cash will be returned to investors in the beginning of next week after the formal approval of the Ministry of Commerce and the uploading of the new shareholders information to Tadawul.
Alujain Corporation develops competitive world-scale projects that benefit from the Kingdom’s resource base of reliable and low-cost hydrocarbons and minerals, competitive labor costs, available infrastructure and competitive utility prices.
FTH provides a wide range of corporate finance advisory services to a diversified client base in the Middle East. Services include mergers and acquisitions, private placements, public offerings, and general strategic and financial advisory.
