RIYADH, 17 May 2005 — The Saudi Research & Marketing Group (SRMG) yesterday appointed Samba Financial Group as its financial adviser and the manager of the initial public offering (IPO) scheduled for next year, an official statement said.
Prince Faisal Bin Salman, chairman of SRMG, signed an agreement with Eisa M. Al-Eisa, managing director and CEO of Samba at SRMG headquarters here. Dr. Azzam Al-Dakhil, executive vice president of SRMG, and other top officials were present at the signing.
“With this agreement, SRMG enters a new phase in its history of being a leading company in publishing, advertising, printing and distribution in the Arab world,” the statement said.
The company emphasized its strong financial position and performance as its sales rose by 22 percent last year to SR949.4 million. “During the same year, the company’s net profit soared 303 percent to reach SR43.5 million,” it added.
The company continued its good performance this year with first quarter sales reaching SR240.3 million which is 23 percent up compared to last year. The net profit in the first quarter rose by 346 percent to SR27.6 million compared to 2004.
“Samba was appointed IPO manager considering its financial strength and vast experience in the field,” the statement said. Samba has been the manager of a number of recent IPOs including those of Bank Albilad and Etihad Etisalat. The total value of IPOs managed and participated by Samba is some SR2.88 trillion.
Prince Faisal said the floatation of shares of SRMG, a pioneering publishing, advertising, printing and distribution company, would be a “qualitative addition” to the Saudi stock market because of its strong financial standing.
“We are looking forward to achieving much better financial results in the coming years,” the prince said, adding that the company had made remarkable strides in various fields. “SRMG’s IPO is a good opportunity for investors thanks to the company’s brand name and its good financial results and profits over the past years,” the chairman said.
Prince Faisal also spoke of SRMG’s huge potential and the excellent human resources that have enabled it to make tremendous achievements. He said the company’s successful administrative and financial restructuring had contributed to improving its financial results.
Samba’s CEO Al-Eisa said the bank has been managing IPOs as part of its service to the national economy, adding that the IPOs had increased Saudi investments within the country.
“The IPOs also offer new investment channels to absorb the surplus liquidity and provides investors a lucrative choice,” Al-Eisa said after signing the accord. He underscored the bank’s achievements in managing IPOs of Etihad Etisalat and Bank Albilad. More than half the country’s population subscribed to Albilad shares.
Al-Eisa described SRMG as one of the largest companies in the marketing and publishing sector. “SRMG enjoys a strong financial position and its success is fully ensured. It will be an excellent addition to the capital market,” he said. He thanked Prince Faisal for the company’s confidence in the bank.
