RIYADH, 24 May 2006 — Investors from the Kingdom, India and two other Gulf states have joined hands to launch a SR400 million brokerage firm here.
The Indo-Gulf firm, which makes its debut on the Saudi market against the backdrop of a turbulent stock exchange, will also handle IPO (initial public offering) management through its network of branches to be set up in the main regions, it was announced here.
The new business alliance comprises Jamal and Khalid Al-Johar Development Co. (Al-Johar Stocks) of Saudi Arabia, Geojit Financial Services Ltd. of India, the National Securities Company of Oman and Rasmalah Investment Co. of the UAE, in addition to eight other Saudi investors. The operation and partnership contract for the new brokerage company was signed in the presence of Khalid Al-Johar, CEO of Jamal and Khalid Al-Johar Development Co. on behalf of his company, besides representatives from the other two companies as well as Saudi investors. C. G. George, managing director of Geojit Financial, signed the contract on his firm’s behalf.
Capitalized at about $ 3.5 million, Geojit Financial has a current market value of over $71 million and a customer base exceeding 300,000 clients. Assaf & Rowaished Legal Consultant Office will be responsible for all the regulatory procedures of the brokerage company. A joint declaration issued after the signing ceremony stated that Geojit Financial would be the main partner and operator of the brokerage company, while Al-Johar will play a supervisory role. The regulatory procedures of the Capital Market Authority (CMA) and other formalities will be completed for obtaining the license.
Al-Johar pointed out that Geojit Financial is involved in share trading in addition to its Internet service provided to their investors. Al-Johar added that the Indian firm has a good track record in central reservation operations and portfolio management. A term of professionals will service the clients through a system for executing the sale and purchase orders in double quick time.
Regarding their future plans, Al-Johar said the company intends providing comprehensive financial services, including the management of investment funds after obtaining the license from the CMA.
Speaking about the Indian partner in the alliance, Al-Johar indicated that Geojit Financial is a share-holding company established in 1987 and registered at the Bombay Stock Exchange in 2000. It is one of the leading companies in the field of brokerage and trading services, which it provides either directly or through Internet to the Indian, American, European and Middle East capital markets. It is also engaged in the purchase and sale of shares, central reservation and portfolio management.
Al-Johar added that the operating company has a network of about 350 branches in India, besides offices in the UAE, Qatar, Oman that have satellite links and are working as brokers for the sale of Indian shares and portfolio management services.
