JEDDAH, 30 June 2007 — The Saudi Printing & Packaging Company (SPPC), a subsidiary of Saudi Research & Marketing Group (SRMG), goes public today. The company offers 18 million shares worth SR396 million to Saudi investors in a five-day initial public offering (IPO), the first by a printing company in the Middle East.
Prospective investors can buy a minimum of 10 shares and a maximum of 100,000 shares at the rate of SR22 per share. As many as 5.4 million shares have been allocated to individual subscribers and 12.6 million shares are going to investment funds. The number of shares allocated to individual subscribers could be increased to nine million if their number exceeds 540,000.
Prince Faisal bin Salman, chairman of SRMG, described the IPO as one of the major turning points of the printing company, which has a capital of SR600 million. “The IPO will certainly contribute to strengthening and diversifying the company’s base of shareholders and support its future trends,” he said. SPPC has made rapid strides in terms of providing quality service, making excellent financial performance and expanding its activities.
Tarik Algain, the CEO of SPPC, said today’s launch of the IPO represents an important phase in the company’s history and development. “The IPO will take the company to new heights of progress and help achieve its objective of becoming an integrated printing group in the Arab region,” Algain said.
He expressed his confidence that the company would continue to make excellent achievements as did in the past as a result of its comprehensive vision and expansion plan. He also expressed his full confidence in Samba Financial Group, saying it would manage the IPO in the best manner.
Eissa Al-Eissa, the CEO of Samba, said his bank was proud of managing the IPO of one of the largest printing companies in the Middle East. “SPPC has won huge public confidence as a result of its good history, comprehensive services, expanding vision and strong base,” Al-Eissa said, adding that this would encourage a large number of people to purchase SPPC shares.
“We have completed all arrangements to make the IPO a big success,” Al-Eissa said. Agreements have been reached with other banks such as the National Commercial Bank, Riyad Bank and Banque Saudi Fransi to provide all facilities to subscribers. He said final share allocations would be completed by July 9.
Prospective investors can buy SPPC shares either by approaching branch offices of these banks or through electronic services like ATMs and the banks’ Internet websites. “We have already conducted experimental operation of these systems to make sure they are safe and effective to make the conduct of the IPO smooth and successful,” the Samba chief said.
