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Saudi Fashion Retailer Alhokair Plans $352 M IPO - ASHARQ AL-AWSAT English Archive
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RIYADH, (Reuters) – Fawaz Abdulaziz Alhokair & Co.,Saudi Arabia’s largest fashion retailer with brands such as La Senza, plans to raise $352 million from an initial public offering to finance regional growth, the company announced this week.

Alhokair, based in Riyadh, will sell 12 million shares or 30 percent of its stock, at 110 Saudi riyals each ($29.33), it said in a statement, confirming an earlier Reuters report citing sources familiar with the transaction.

The price values family-owned Alhokair at 4.4 billion riyals in what will be the kingdom’s first IPO of a fashion retailer.

“Fashion retailing is growing at more than 20 percent per annum and has the potential to show robust growth in the future,” Chief Executive Abdulmajeed Alhokair said in the statement, which did not give details about the expansion plans.

Alhokair’s net income surged 41 percent to 246 million riyals in the year to March 31, the company said. Sales rose 30 percent to 1.3 billion riyals.

Alhokair will start selling the shares on Oct. 7. The sale closes Oct. 16. The price is 14.5 times forecast earnings per share in the year to March 31, 2007, one source familiar with the transaction said.

Alhokair operates 617 stores and markets more than 42 brands including Marks & Spencer, Zara and Massimo Dutti – owned by Spain’s Inditex.

HSBC is Alhokair’s financial adviser and lead manager for the IPO, and Saudi British Bank sole underwriter.

Asharq Al-Awsat

Asharq Al-Awsat

Asharq Al-Awsat is the world’s premier pan-Arab daily newspaper, printed simultaneously each day on four continents in 14 cities. Launched in London in 1978, Asharq Al-Awsat has established itself as the decisive publication on pan-Arab and international affairs, offering its readers in-depth analysis and exclusive editorials, as well as the most comprehensive coverage of the entire Arab world.

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