Riyadh, Asharq Al-Awsat Emaar the Economic City (EEC), a consortium headed by Emaar Properties PJSC and a number of high profile investors from Saudi Arabia, today announced that the Capital Market Authority (CMA) of Saudi Arabia has approved its initial public offering (IPO) of SR 2.55 billion (US$679.9 million). The company also announced that it had received approval from the Ministry of Commerce & Industry for its incorporation.
The share capital of EEC is SR 8,500 million (US$2.27 billion) consisting of 850 million shares with a nominal value of SR 10 (US$2.66) each. EEC will be offering 30% of this equity – 255 million shares – through the IPO at a nominal face value of SR 10 each thereby raising a total of SR 2.55 billion.
The IPO will open for subscription for 10 days from July 22, 2006 to August 2, 2006. The share allotment has been decided at a minimum of 50 shares of SR 10 each and a maximum of 25,000 shares of SR 10 each.
The IPO will facilitate financing of the King Abdullah Economic City (KAEC), to be built at a pristine location off the Red Sea in the north of Jeddah with an investment of SR 100 billion (US$26.6 billion).
SAGIA (Saudi Arabian General Investment Authority), the body responsible for inward investments into the Kingdom, is the prime facilitator for KAEC. SAGIA’s Investor Service Centre will facilitate the provision of services to potential investors. The Centre is SAGIA’s “one-stop” solution aimed at minimizing the number of formal steps associated with investment in the Kingdom.