RIYADH, 3 April 2007 — SABB has announced that its flotation of Takaful shares generated SR247.163 million in subscriptions through 105,397 requests. More than 63 percent of subscriptions were made through alternative electronic channels, such as ATMs, the Internet and phone banking. In an announcement issued here, Dr. Abdulrahman Al-Jaafary, chairman of SABB Takaful Constituents Committee, said that in line with the directives of the Capital Market Authority (CMA), the oversubscription was refunded to subscribers on April 1.
He added: “The huge interest in SABB Takaful shares was due to the subscribers’ confidence in the strength of the Saudi economy, which has witnessed noticeable growth.” Al-Jaafary said the flotation demonstrates the viability of investing in the Saudi financial market as well as the depth of experience of the company’s founders and its anticipated role in the insurance sector. He also commended the performance of banks that participated in the IPO (initial public offering), and their capability in managing several IPOs at the same time.
Al-Jaafary observed: “The company has finished - in an earlier stage - all preparations to commence business, and to compete in the Saudi insurance market, after thorough studies made by the company... and seek ways and means of successful investment by offering new products that will meet market demands, and adopting a modern investment strategy.” He also indicated that the company would apply to the Ministry of Commerce and Industry seeking to register the company, and to convene the annual general meeting, which will be announced soon.
The chairman concluded: “I would like also to express our gratitude and thanks to all subscribers and investors who subscribed to the company’s shares, and their contribution to the success of this IPO. I would like also to thank the Ministry of Finance, Ministry of Commerce and Industry, the Saudi Arabian Monetary Agency, and the CMA, for their support and assistance, and to all participating banks in the IPO.”
