RIYADH, 8 April 2006 — The Saudi Research & Marketing Group (SRMG) is all set to go public today offering 24 million shares at SR46 per share.
“The group enters a new phase in its history as a leading company in publishing, advertising, printing and distribution in the Arab world,” SRMG Chairman Prince Faisal Bin Salman said, adding that the flotation of shares 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, recalling that the company had made remarkable strides in various fields.
Azzam M. Al-Dakhil, SRMG’s executive vice president, said the group was the first company to go public after the recent decision taken by the Capital Market Authority (CMA) splitting the nominal share value from SR50 to SR10 per share in order to boost stock market liquidity.
“The value of an SRMG share is now SR46 after the share split and after adding the premium,” Al-Dakhil said in a recent interview with the Al-Arabiya TV channel.
Earlier, the price was set at SR230 per share, including the premium, he explained. A single buyer can purchase a maximum of 25,000 shares for SR 1.1 million and a minimum of 50 shares for SR2,300.
The SRMG, the biggest publishing house in the Arab world, boasts a total of 15 publications in Arabic, English (Arab News), Urdu and Malayalam, each distinguished in its own field.
According to Al-Dakhil, the group has a research section that mobilizes SRMG’s resources in order to keep abreast with modern developments in the media world. Dwelling on the group’s efforts to diversify its resources and investments by buying publications and publishing houses, he said: “As a result of the far-sighted vision of its efficient management, the SRMG has opened a new chapter in its annals.”
“We have purchased some of the successful projects such as Hala Press in Riyadh and participated in Moutamarat Company along with Dubai Holding,” he explained. “This trend will ensure continued success of the company.”
The IPO will be managed by the Samba Financial Group, which will also act as its financial adviser. Eissa Al-Eissa, managing director and CEO of Samba, expects big demand for SRMG shares in view of the group’s track record and status as a leading publishing organization in the region, and its robust performance.
“Samba is keen on employing its expertise and potential to provide an ideal environment to conduct the IPO, maintaining the highest values and transparency for the success of this experiment which is considered the first IPO of a media group in the Arab world,” Al-Eissa said.
The SRMG posted a record net profit of SR181.4 million last year, 290 percent more than the SR46.5 million profit registered in 2004. He 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.
“Last year’s performance was the best in the company’s history. There was a 12-percent increase, or SR113.6 million in sales, compared to 2004 with total sales of SR1.063 billion,” the company said in a statement. The group’s board of directors has decided to increase the company’s capital in two phases from SR600 million to SR800 million by transferring from 2005 reserves and profits.
The initial public offering of the company, which ends on April 17, will be restricted to Saudi nationals. A booklet detailing the terms and conditions of the offering would be available in the banks dealing with the shares and in the media shortly before the beginning of the IPO.
