Alhokair to Raise SR1.32 Billion in IPO

Khalil Hanware, Arab News
Publication Date: 
Tue, 2006-09-26 03:00

JEDDAH, 26 September 2006 — The initial public offering (IPO) of Fawaz Abdulaziz Alhokair & Company will be open for subscription for 10 days from Oct. 7 to 16.

The company unveiled its prospectus in advance of the IPO to raise SR1.32 billion ($352 million).

The proceeds of the IPO will be used for Saudi Arabian and regional business expansion. The share capital of Fawaz Abdulaziz Alhokair & Company is SR400 million ($106.7 million) consisting of 40 million fully paid ordinary shares with a nominal value of SR10 ($2.66) each with a premium of SR100 per share. The company will be offering 30 percent of its share capital — 12 million ordinary shares — through the IPO.

The minimum number of shares that an individual investor can subscribe is 10 shares and a maximum of 25,000 shares.

Dr. Abdul Majeed Alhokair, chief executive officer, Fawaz Abdulaziz Alhokair & Company, said: “We are confident that Saudis would like to be part of our growing and profitable company. Fawaz Abdulaziz Alhokair & Company shares will add diversity to any investor’s portfolio.”

He added that “Fashion retailing is growing at more than 20 percent per annum and has the potential to continue to show robust growth in the future. We welcome all our Saudi brothers and sisters to invest in Fawaz Abdulaziz Alhokair & Company and the message is: “Come join us, have a slice of future prosperity and be involved in the growth of a business that is part of everyday life in the Kingdom.”

For the fiscal year ended March 2006, Fawaz Abdulaziz Alhokair & Company had sales of SR1.3 billion, showing growth of 30 percent as compared to 2004/05, with net income increasing by 41 percent to SR246 million.

Fawaz Abdulaziz Alhokair & Company sold more than 15 million items in 2005/06 and served more than 12 million customers. As of March 2006, the company had 617 stores and 42 international brands in its portfolio.

The international brands in its portfolio include Zara, Massimo Dutti, Promod, Adams, Aldo and Monsoon. It has a strong product offering across all major segments like womenswear, menswear, kids & teens fashion, footwear and accessories to name a few.

HSBC is the financial adviser and lead manager, SABB is the sole underwriter of the IPO, while Deloitte & Touche Bakr Abulkhair & Co. are the registered auditors. The legal adviser to the transaction is the Law Office of Mohammed Al-Sheikh.

Ioannis Karapatakis, managing director of Global Investment Banking Advisory of HSBC Saudi Arabia Ltd., said: “Fawaz Abdulaziz Alhokair & Company’s prospectus is a comprehensive document that contains all the relevant information from past performance to management structure to operational overview. The abridged version of the prospectus will be publicized in newspapers for the valued investors. This IPO is indeed another milestone for HSBC and SABB and we are very pleased and honored to be its advisers.”

Fawaz Abdulaziz Alhokair & Company is one of the fastest growing and dynamic enterprises in the Kingdom employing more than 2500 people.

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