Riyadh, Asharq Al-Awsat- Emaar the Economic City (EEC) will roll out its initial public offering (IPO) to raise 30 per cent of its share capital from July 22 to August 2, 2006.
Approved by the Capital Market Authority (CMA) of Saudi Arabia, the ten-day IPO is fully underwritten and open only for Saudi nationals. A total of 255 million shares are on offer at a nominal value of SR10 each, and aims to raise SR2.55 billion. Net proceeds from the offering will be used by EEC to finance its real estate development operations.
Approved by the Ministry of Commerce & Industry vide Ministerial Resolution No. 609 dated May 13, 2006, for its incorporation, EEC is developing the single largest private sector initiative in Saudi Arabia – the SR100 billion (US$26.6 billion) King Abdullah Economic City (KAEC). Saudi Arabian General Investment Authority (SAGIA), the body responsible for inward investments to the Kingdom, is the prime facilitator of KAEC.
“The King Abdullah Economic City, the first fully private sector funded Economic Zone and the single largest private sector investment in the Kingdom, has the potential to attract increased foreign investment through its comprehensive development plan,” said EEC Chairman Mr Mohamed Ali Alabbar. “The six key components of the project are all geared to generate more employment opportunities for Saudi nationals, build the Kingdom’s infrastructure and facilitate sustained investor interest.”
“Encouraged by governmental incentives and economic reforms, investor confidence is surging in the Kingdom,” said Mr Nidal Jamjoom, EEC CEO. “We are thankful to CMA for the swift approval for the IPO, and expect huge investor response.”
Potential investors can obtain the IPO prospectus, and the subscription application form from the following 11 banks: The Saudi British Bank (SABB), The National Commercial Bank (NCB), Bank Al Bilad, Bank Al Jazira, Riyad Bank, Banque Saudi Fransi, The Saudi Hollandi Bank, The Saudi Investment Bank, Arab National Bank, Al Rajhi Banking & Investment Corporation and Samba Financial Group.
“To have the Kingdom’s top-most banks participating in our IPO is a reiteration of the trust in the potential offered by KAEC, which will expand the economy, catalyze foreign investment inflow, and boost commerce and industry,” said Mr Jamjoom. “Their involvement also underscores a new market dynamic of co-opetition, where various players from the same sector work towards a common goal – the welfare of the society.”