The Capital Market Authority (CMA) in the Kingdom of Saudi Arabia has announced the price of the initial public offering (IPO) for the shares of Abdullah A. M. Al-Khodari Sons Company after successful coverage by the institutional investors. The Company will offer up to 50% of its 12,750,000 floated shares to retail investors commencing 4th October 2010 and ending 10th October 2010.
The Company appointed GIB Financial Services (GIBFS), a subsidiary of Gulf International Bank (GIB), as its financial advisor and lead manager, and GIBFS and Riyad Capital as its co-underwriters for the IPO.
Dammam-based Abdullah A. M. Al-Khodari Sons Company is a leading general contracting firm in Saudi Arabia with well diversified activities covering infrastructure, buildings, roads and bridges, water and sewage networks, transportation and logistics, environmental services, and operations and maintenance.
The Company has been consistently profitable, with robust, resilient financial performance even during the global economic downturn. The backlog of awarded contracts is sufficient to maintain revenue growth for the next two years. The Company has a highly successful track record in infrastructure and environmental services projects for various government and quasi-government bodies in Saudi Arabia. Subsequent to the listing, Abdullah A.M. Al-Khodari Sons Company will be the only contracting company on Tadawul with well diversified operations across various segments within the infrastructure sector.
Commenting on the successful coverage of the IPO, GIB's CEO and Chairman of GIBFS, Dr. Yahya A. Alyahya, said: "We are very pleased with the successful coverage of the IPO, which reflects the strong merits of the Company and the vitality of the Saudi capital market, complemented by market confidence in the skills and capabilities of GIBFS as the leading provider of investment banking services."
GIBFS has an established track record of advising on a number of successful IPOs in Saudi Arabia. To date, GIBFS has introduced offerings to the Kingdom's capital market in excess of SAR 19 billion (US$ 5 billion). Since 2008, the company has advised on four major IPOs in the Kingdom including the IPOs for Abdullah Al Othaim Markets Company, Halwani Brothers, Saudi Steel Pipe Company and Abdullah A. M. Al-Khodari Sons Company. In the past, GIBFS has advised Saudi Telecom Company, Bank Al Bilad, Saudi Paper Manufacturing Company and Advanced Petrochemical Company towards successful listings on Tadawul. Within the region, GIB was the financial advisor to Al Baraka Banking Group on their IPO in 2006 which was a simultaneous listing on the Bahrain Stock Exchange and NASDAQ Dubai. GIB successfully advised Galfar Engineering & Contracting, which was listed on the Muscat Securities Market. Apart from IPOs, GIB has also advised leading Saudi companies on private sales of shares, including Zamil Industrial Investment Company, Saudi Dairy & Foodstuff Company, Jarir Marketing Company and Ajlan Bin Abdulaziz Al Ajlan & Bros. GIB was also the financial advisor to Saudi Aramco and Exxon Mobil on the sale of 100% of their equity in Saudi Arabian Lubricating Oil Company (Petrolube) in 2007.
GIBFS is a wholly owned subsidiary of GIB. It was established in 2008 to carry out investment banking activities within Saudi Arabia and is duly authorized by the CMA. GIB is a leading merchant bank in the Middle East with its principal focus on the Gulf Cooperation Council states. Its primary shareholder is the Public Investment Fund of Saudi Arabia. The Bank has branches in Riyadh and Jeddah and is planning to open a third branch in the Eastern Province in early 2011. GIB provides client-led, innovative financial products and services to a wide customer base in the region, including Equity Capital Markets, Debt Capital Markets, Private Equity, Project & Structured Finance, Islamic Banking and Asset Management.
© Press Release 2010
