RIYADH - Zain, Saudi Arabia's third mobile operator, licensed to operate in the Kingdom by the Communication and Information Technology (CITC), signed an agreement yesterday with Banque Saudi Fransi (BSF) appointing the bank as the lead manager for a SR7 billion Initial Public Offering to start on Saturday.
BSF will be the lead manager and will underwrite and receive bank agreements for the management of the mobile operator's IPO.
"BSF is honored to be selected by Zain and look forward to working with them and the other involved banks," said Jean Marion, managing director for BSF, at the press conference held yesterday. He added that this is the second largest IPO in the Kingdom and his bank is proud to associate with Zain in its maiden effort.
"Zain intends to differentiate itself in the Kingdom by offering unique services through the state-of-the-art network that is developed to the highest standards to serve the customers in a simple manner," Marwan Alahmadi, CEO of Zain said. "IPO subscriptions open from Saturday until the 18th February and we are delighted to appoint BSF as the lead manager and lead underwriter for the IPO. BSF will bring great value and expertise in ensuring a smooth floatation," Marwan added.
The IPO consists of 700 million shares with a par value of SR10.
"The total represents 50 percent of the company's share capital which will be available for subscription for Saudi investors. Ninety percent of the shares will be allocated to the Saudis, while the remaining 70 million shares will be allocated to the Public Pension Agency.
The share offer is also open to Saudi divorced and widowed women, who have children by a non-Saudi husband. They can subscribe in their children's names even if they are minors.
Zain has signed agreements with Banque Saudi Fransi, Al-Rajhi Bank, Arab National Bank, Bank Albilad, Bank Al-Jazira, National Commercial Bank, Riyadh Bank, SAMBA, SABB, Saudi Hollandi Bank and the Saudi Investment Bank, to act as receiving banks for the IPO subscriptions. Zain has also appointed five Saudi banks as co-underwriters for the IPO.
The five banks include Al- Rajhi Bank, Bank Albilad, Riyadh Bank, Saudi Hollandi Bank and NCB Capital, that will work in association with BSF to bring the IPO to market.
The mobile company plans to commence operations in the Kingdom during the first half of this year. "Key elements of the services are planned to include not only classic, value-added voice messaging and data services, but also to include multimedia applications, such as video calling and content services, including ring tones, sports updates, news quotes, games and facilities."
The company has committed itself to hire and train Saudi nationals and on operation launch day is committed to 70 percent their employees being Saudis.
The group currently operates under the Zain brand name in Kuwait, Sudan, Jordan, Iraq and Bahrain.
In Lebanon the company operates as MTC-touch. The company plans to commence operations in the Kingdom of Saudi Arabia in 2008 under the Zain brand.
