JEDDAH, 19 May 2007 — The Saudi Printing & Packaging Company (SPPC) — a subsidiary of Saudi Research and Marketing Group (SRMG) — which prints about 55 newspapers and magazines including Arab News and Asharq Al-Awsat, has completed a number of practical steps for its 30 percent initial public offering (IPO).
The company’s board of directors met last week under the chairmanship of Prince Faisal ibn Salman, chairman of SRMG, and discussed SPPC’s financial situation and future plans.
Prince Faisal has described SPPC as one of the leading printing companies in Saudi Arabia and the Gulf region. “It enjoys a strong financial position and has achieved positive results over the past years,” he said. It posted SR245 million in revenue and SR68 million in net profit in 2005. Al-Madina’s revenue for the first half of 2006 rose to SR169 million with a net profit of SR67 million.
The SRMG chief said the returns from the IPO would be used in accordance with the decision taken by the board to strengthen the group’s position as a market leader at local and regional levels. “We’ll use the returns from the IPO to expand the group’s activities, either through entering into new investment projects or by further strengthening the group,” he said.
Prince Faisal said the SPPC IPO would have a positive impact on the group as it would lead to increasing its investments. “This again goes in line with the board’s policy of expanding its activities and increasing investment in various media projects,” he explained.
Commerce and Industry Minister Dr. Hashim Yamani recently approved SPPC’s shift to a closed joint stock company with a capital of SR600 million ($160 million). It will have 60 million shares each with a nominal value of SR10.
The company is licensed to carry out various activities such as printing, management, operation and maintenance of printing projects; wholesale and retail sale of printing equipment and materials; printing of newspapers, magazines and books in different languages locally and internationally; advertising and propaganda work locally and internationally; and production and distribution of intellectual, scientific and media works.
The Jeddah-based SPPC started more than 44 years ago with a capital of SR1 million under the name Al-Madina Printing & Publishing Company.
In 1994 it was changed into a limited liability company and affiliated to SRMG.
SPPC owns and participates in the ownership of Hala Press, Muttahida Press in the UAE and Taiba Press in Madinah (under construction) in addition to the Madina Printing Press. Recently it started packaging activities.
“The IPO is also in line with the economic reform policies adopted by the government of Custodian of the Two Holy Mosques King Abdullah aimed at expanding investment opportunities and increasing the number of joint stock companies on the Saudi bourse,” the prince said.
An agreement was signed last week appointing Samba Financial Group as the financial consultant and manager of the Al-Madina IPO, which is expected to take place in the first half of next year after obtaining approval from authorities.
Economic analysts have applauded the government’s move to license more joint stock companies.
