JEDDAH, 13 May 2008 — Saudi Arabian Mining Company (Maaden) will sell 50 percent or 462.5 million of its shares for SR9.25 billion at an initial public offering in July, the Capital Market Authority (CMA) announced yesterday.
The shares will be sold at the rate of SR20 per share, including SR10 premium, during the July 5-14 IPO, the CMA said, adding that the share allocations would be made in two phases. In the first phase, 25 shares will be given to each subscriber and, in the second, the required number of shares, not exceeding 2,000.
The CMA also announced yesterday Astra Industrial Group’s IPO of 22,235,294 shares representing 30 percent of the company’s total outstanding shares. A portion of the offered shares will be allocated for mutual funds and authorized persons. The company’s shares will be offered from July 7 to Aug. 4, once the book-building process is complete. Methanol Chemicals Company (Chemanol) will offer 60,300,000 shares or 50 percent of the company’s total outstanding shares from Aug. 11 to Aug.20, the CMA said.
In continuance with its efforts toward development of the capital market, the CMA yesterday gave approval for Audi Saudi Arabia Co. to offer “Al-Safwa Shariah Saudi Index Fund” and for Rana Investment Co. to offer “Rana Liquidity Fund.” The stock market, however, reacted negatively yesterday despite various announcements by the CMA. The Tadawul All-Share Index (TASI) dropped 80.24 percent to 9,615.05. The stock market turnover nearly reached SR7 billion yesterday.
Meanwhile, HSBC Saudi Arabia Ltd., the financial adviser and lead manager for the IPO of Mohammad Al-Mojil Group (MMG), announced yesterday that retail subscription to the IPO, which was scheduled to close yesterday, reached SR2.33 billion by close of the ninth day of the offering.
At the end of Sunday, applications had been received from 2,294,233 subscribers, which covered 159 percent of the maximum allocation to the retail tranche of the IPO.
The top gainer yesterday was Saudi Arabian Amiantit Co. as its shares jumped 10 percent to SR46.75. However, Saudi Transport and Investment Co. shares plunged 5.83 percent to SR32.25. In the telecommunication & information technology sector, shares in Saudi Telecom Co. (STC) fell by 1.15 percent to SR64.25, Etihad Etisalat by 1.81 percent to SR54 and Zain KSA by 1 percent to SR24.75.
