JEDDAH, 2 February 2006 — Kingdom Hotel Investments (KHI), a leading hotel and resort acquisition and development company, has announced plans for an initial public offering (IPO), which would list shares on the Dubai International Financial Exchange (DIFX) and global depositary shares (GDSs) on the London Stock Exchange.
The IPO will be effected by means of an offer of shares and GDSs to institutional and other investors in the Middle East and Europe.
All shares offered will be primary shares. Each GDS will represent one share.
KHI plans to use the net proceeds from the offering to finance the expansion of its portfolio of hotel investments through acquisitions and new developments and for other general corporate purposes.
Prince Alwaleed ibn Talal, chairman of the board of directors of KHI, said: “I am delighted that we are now able to offer new investors the opportunity to participate in the growth potential of KHI. The company and its management have built up a track record of establishing first class and luxury hotels in key growth markets.”
Sarmad N. Zok, chief executive officer and director of KHI, said: “This is an exciting moment in the development of KHI and one we have been working toward for some time. We are keen to continue to maximize the growth potential of the business and exploit in full the opportunities we have identified.”
The decision to list the shares on DIFX reflects the company’s wish to maximize regional participation in the IPO. DIFX is committed to international best practice in terms of regulation and is set up to allow unrestricted and easy access for local and international investors. A listing of GDSs on the London Stock Exchange is intended to maximize KHI’s profile amongst and accessibility for international institutional investors alongside investors in the Middle East.
Deutsche Bank and Morgan Stanley have been appointed joint global coordinators and joint global bookrunners for the proposed offer. Deutsche Bank, Morgan Stanley, The National Investor and Deutsche Al-Azizia Financial Services have been appointed joint lead managers.
KHI is focused on the first class and luxury market segments in high growth markets such as the Middle East and Africa. The company has ownership interests in 26 properties in 13 countries including 15 operating hotels and resorts and 11 hotels and resorts currently under construction or in the initial stages of development.
Four Seasons, Fairmont and Mövenpick manage the operating hotels in KHI’s portfolio.
For the first nine months of 2005, KHI’s revenue increased by 45 percent to $43.7 million compared to $30.1 in the same period of 2004 and net income increased by 47 percent to $8.2 million compared to $5.6 million in the same period of previous year. For the year 2004, revenues and net income were $38.4 million and $4.4 million, respectively.
KHI, headquartered in Dubai, was established in May 2000, as the Middle East Hotels Company. The company’s name was changed to Kingdom Hotel Investments in August 2004. Kingdom Holding Company (KHC) is different to KHI. KHC is one of Saudi Arabia’s largest companies and is a general holding company for many of Prince Alwaleed’s investments worldwide.
