RIYADH, 5 April 2006 — The King Faisal Foundation, a well-known Riyadh institution, has announced that Saudis will have an opportunity to become shareholders in the ownership of its commercial and residential properties when a public offering (IPO) is floated at the end of this year.
In a statement released here, Prince Bandar ibn Saud ibn Khaled, deputy director general of the foundation, said Deutsche Bank had been appointed as a financial adviser for the flotation of the IPO in cooperation with the Capital Market Authority (CMA).
He said the IPO would include the Al-Faisaliah, Al-Khozama and the King Faisal Charitable Foundation complexes. It will be floated in the last quarter of the year. “The decision to offer shares in the ownership of Al-Khozama Co., which has a long experience in managing real estate projects represents a good opportunity for citizens to hold shares in one of Riyadh’s architectural marvels that is also a huge commercial success.”
Prince Bandar said that shareholder would also benefit from an investment opportunity that guarantees direct and secure financial returns on a long-term basis.
In a subsequent interview with CNBC channel, he said 40 to 50 percent of the IPO value would be floated for subscription. “There will be additional investment projects after the IPO. The new board of directors and the general assembly will decide on the implementation of these projects at a later stage,” he said, adding that the adjacent premises of Al-Faisaliah Tower would be included in the future schemes.
According to the information on its web site, the King Faisal Foundation’s most spectacular investment to date is the $320 million Al-Faisaliah complex. It brings together five separate operations under one management to encourage self-generating and cross-trading opportunities. Part of the revenue generated from these schemes is used for the King Faisal International Prizes as well as a range of charitable projects.
